The Securities and Exchange Commission (SEC) appears to be on the hunt for cryptocurrency companies. Industry players believe that the regulator is putting in place inadequate and exaggerated regulatory measures. They accuse the SEC of not providing clear answers to their main concerns. Recently, even a member of the SEC was outraged at the way the federal agency regulates the cryptocurrency industry.
The SEC is not taking a sound approach to cryptocurrency regulation
Hester Peirce, a SEC commissioner, recently talked about how the regulator regulates cryptocurrencies. In an article by Decrypt, said the SEC treats cryptocurrencies improperly. He explains that regulators initially believed the new industry would be short-lived. They therefore asked themselves:Why invest resources in developing some sort of framework for something that won’t stick? “.
The commissioner explained that this assumption led the SEC to adopt an approach that goes against the way it usually works. The agency therefore proceeded to apply only isolated actions concerning the regulation of the crypto sector. “Usually when we write a rule, we come up with a proposal “Said Hester Peirce.
The commissioner added:People talk to the regulator, we talk to the public. It is a very healthy conversation“But, so far, the SEC isn’t interacting with cryptocurrency companies in a healthy way. What it does is impose your own policy unheard of for any of the crypto companies. However, it should rather seek to collaborate with the entire industry.
According to Commissioner Peirce, this is not the right way to regulate
The current SEC chairman has always said that the agency treats cryptocurrencies no differently than other industries. In fact, Gary Gensler has often said he is willing to respond to criticism of the SEC’s policies. He encourages cryptocurrency companies to “open trade “if they are dissatisfied with the rules put in place.
But, for SEC Commissioner Hester Peirce, “no one else is in the room. It is a dialogue between the deaf“.”Customers are not in the room. The contestants are not in the room. And the regulator has the upper hand because they are about to take enforcement action. It’s not just a good way to adjust“, she said.
SEC Commissioner Hester Peirce argues that the federal agency treats cryptocurrencies aggressively, when no other sector is treated in this way. According to her, contrary to what the SEC chairman often claims, the regulator imposes its policy on cryptocurrency companies.
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Far from dulling my enthusiasm, a fruitless investment in a cryptocurrency in 2017 only increased my enthusiasm. I therefore decided to study and understand the blockchain and its multiple uses and to transmit information relating to this ecosystem with my pen.