SEC Commissioner Hester Peirce, in an interview, called for clearer crypto regulations and collaboration with the industry to foster innovation.
SEC Commissioner Hester Peirce, who is frequently referred to as “Crypto Mom,” emphasized the necessity of regulatory clarity in the cryptocurrency industry during a recent interview with Fox Business.
Hester Peirce Opinion on X
In a post on X, Eleanor Terret addressed concerns regarding “Operation Chokepoint 2.0,” a term that refers to the ongoing regulatory crackdowns. She also provided a vision for how the SEC could better support the existing crypto space under prospective new leadership during Donald Trump‘s presidency.
Peirce emphasized the importance of fair standards and contended that the SEC must reconsider its stance on cryptocurrencies in order to facilitate the industry’s expansion.
She aspires to eliminate superfluous obstacles, such as restrictions on crypto services, to enable businesses to innovate without hindrance. She also emphasized the necessity of establishing a clear definition of which digital assets are classified as securities and which are subject to SEC regulations.
This would provide enterprises and investors with increased assurance. In addition, Peirce is of the opinion that regulators should collaborate closely with the crypto industry to collect public input in order to make the rules more practical and equitable.
Cryptocurrency Reaction
Although Hester Peirce’s recommendations to elucidate SEC regulations have garnered some support, there is still skepticism. Critics, such as David Barrera, CEO of Enumma, are concerned that her approach could lead to an increase in the classification of cryptocurrencies as securities, a classification that the crypto community opposes.
The primary issue is the establishment of a balance between the industry’s ability to expand without excessive regulation and the necessity for regulation.
Also, David Sacks, AI and Crypto Czar, is of the opinion that Operation Chokepoint 2.0 will unjustly target crypto businesses. He points to Silvergate Bank, which collapsed despite being financially stable, and attributes the bank’s inability to collaborate with crypto companies to regulators.
Sacks is advocating for an investigation into these actions, asserting that they have a detrimental impact on innovation in the crypto industry. He is advocating for equitable regulations to facilitate the industry’s expansion without undue constraints in his capacity as the new Crypto Czar.
Coinbase recently disclosed documents that indicate the FDIC instructed banks to cease providing services to crypto businesses in 2022, in response to the persistent crypto concern.
These documents were obtained through a public records request. Paul Grewal, the Chief Legal Officer of Coinbase, emphasized that this demonstrates a concerted effort to restrict the crypto industry‘s access to banking.
This is a highly contentious issue, as any regulations that are established in the moment may have long-term repercussions on the entire crypto sector, which is currently anticipating the establishment of fair and transparent regulations.