- SEC Commissioner criticizes the regulatory approach to crypto, calling for a more innovation-friendly environment.
- Coinbase’s Chief Legal Officer, Paul Grewal, thanks Peirce for her statement.
- The IAC wants SEC to treat all tokens as securities with aggressive enforcement.
In an exciting turn of events, Hester Peirce, the Commissioner of the US Securities and Exchange Commission (SEC), has criticized the agency’s regulatory approach towards new technologies and business models, including those in the crypto industry.
Commissioner Peirce argued that the SEC’s rigid approach to regulation does not allow for room for new technologies or ways of doing business. She also criticized the SEC for punishing entrepreneurs who try to innovate but fail to comply with existing regulations instead of working with them to find practical solutions.
Paul Grewal, the Chief Legal Officer of the Coinbase (NASDAQ:COIN) crypto exchange, shared Peirce’s statement with the crypto community over the weekend, thanking her for the positive words. “In just 60-something words,” Grewal wrote, “SEC Commissioner has managed to articulate all that hits awfully close to home.”
In just 60-something words, SEC Commissioner @HesterPeirce has managed to articulate all that hits awfully close to home. Thank you. pic.twitter.com/8mZxkg16rH— paulgrewal.eth (@iampaulgrewal) April 15, 2023
Notably, the Commissioner’s comments come when the SEC grapples with regulating cryptocurrencies and related activities, such as initial coin offerings (ICOs) and decentralized staking services. The SEC has faced criticism for being slow to provide clear guidance regulating crypto and for its enforcement actions.
Commissioner Peirce’s statement highlights the need for regulators to balance fostering innovation and protecting investors. While regulatory oversight is necessary to ensure investor protection, experts have argued that overly burdensome regulations can stifle innovation and prevent entrepreneurs from bringing new products and services to market.
In a recent letter, the Investor Advisory Committee (IAC) asked the SEC to treat all crypto tokens as securities and pursue aggressive enforcement. A lawyer started the conversation on Twitter, quoting the IAC to have said crypto poses a risk to investors and harms racial minorities.
Investor Advisory Committee to SEC ("independents" advising SEC on desirable policy to protect investors) recommends SEC treat essentially all tokens as securities and pursue aggressive enforcement… argues crypto harms racial minoritiesinfuriating take but par for the course pic.twitter.com/eJFMNQaP1eThe post SEC Commissioner Criticizes Agency’s Approach to Crypto Regulation appeared first on Coin Edition.— _gabrielShapir0 (@lex_node) April 11, 2023