A commissioner of the United States Securities and Exchange Commission (SEC) said Friday, Feb. 8, that the delay in establishing crypto regulation may allow more freedom for the industry to move on its own.
Heister Peirce, who is widely known as the “Crypto Mom” in the community for her dissent against the SEC’s decision to reject a Bitcoin exchange-traded fund (ETF) proposed by the Winklevoss twins, made the comments in a speech on the issues of state regulation at the University of Missouri School of Law.
The commissioner noticed that the process of regulating a new industry might be lengthy, and stressed that the SEC has to act appropriately in order to enable the industry to evolve without compromising the current laws:
“If we act appropriately, we can enable innovation on this new frontier to proceed without compromising the objectives of our securities laws — protecting investors, facilitating capital formation, and ensuring fair, orderly, and efficient markets.”
On the other hand, however, overregulation sometimes takes place, Peirce lamented. She stated that enforcement actions are not her preferred method for setting expectations for crypto investors. Moreover, she added that some crypto projects are simply unable to make any progress within existing framework, because “securities laws make them unworkable.”
“We rightfully fault investors for jumping blindly at anything labeled crypto, but at times we seem to be equally impulsive in running away from anything labeled crypto. We owe it to investors to be careful, but we also owe it to them not to define their investment universe with our preferences.”