The Securities and Exchange Commission (SEC) appears to be going after cryptocurrency companies. Industry players believe that the regulator is implementing inappropriate and exaggerated regulatory measures. They accuse the SEC of not providing clear answers to their main concerns. Recently, even an SEC insider was outraged by the way the federal agency regulates the cryptocurrency industry.
The SEC is not taking a sound approach to regulating cryptocurrencies
Hester Peirce, an SEC commissioner, recently spoke about how the regulator regulates cryptocurrencies. In an article by Decipher, claimed that the SEC treats cryptocurrencies improperly. He says regulators initially believed the new industry would be short-lived. They then 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 then proceeded to apply only isolated actions regarding the regulation of the crypto industry. “Usually when we write a rule, we come up with a proposition said Hester Peirce.
The commissioner added:People talk to the regulator, we talk to the public. It’s a very healthy conversationBut, so far, the SEC is not interacting with crypto firms in a sane way. What it does is impose its own policy unheard of for each of the crypto companies. However, it should rather seek cooperation with the whole industry.
According to Commissioner Peirce, this is not the right way to regulate
The current SEC chairman has always said that the agency does not treat cryptocurrencies any differently than other industries. Indeed, Gary Gensler has often said that he is willing to respond to criticism of SEC policies. He encourages cryptocurrency companies to “open trade »if they are not satisfied with the standards put in place.
But, for SEC Commissioner Hester Peirce, “no one else is in the room. It is a dialogue between the deaf“. “The 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 just not a good way to regulate“, she said.
SEC Commissioner Hester Peirce says the federal agency treats cryptocurrencies aggressively, when no other industry is treated this way. According to her, contrary to what the SEC chairman often claims, the regulator imposes its policy on crypto companies.
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Far from dampening my enthusiasm, a failed 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 convey information related to this ecosystem with my pen.