Crypto Mom" Advocates for More Decentralization and Lenient Crypto Regulation
Summary:
SEC Commissioner Hester Pierce, also known as 'Crypto Mom', advocates for increased decentralization within the U.S. financial system and a more relaxed approach to cryptocurrency regulation. In a recent discussion, Pierce addressed the risks of centralization, potential legislation classifying decentralized technologies as financial institutions, and the need for clarity in registration. She also highlighted the SEC's current enforcement-only stance, emphasizing the need for projects to grow and decentralize without legal threat.
Hester Pierce, a commissioner for the U.S. Securities and Exchange Commission (SEC), made a strong case for increased decentralization within the country's financial system and a lenient approach towards crypto regulation. Popularly known as the 'Crypto Mom', Pierce concluded her conversation at the ETHDenver conference with CNBC's MacKenzie Sigalos on February 29, asserting the positive influence of decentralization on the U.S. financial system. She voiced her concerns about the risks associated with centralization, pointing out that increased resilience and strength comes from decentralization, which she would like to see more of.
Sworn into the SEC in 2018 by ex-President Donald Trump, Pierce, a previous legal practitioner, has earned the nickname 'Crypto Mom' due to her supportive stance towards the crypto sector, often expressing her disagreement regarding its excessive management. In the session, the SEC Commissioner voiced her concerns regarding the suggested laws intending to classify decentralized technologies such as network nodes, mining pools, validators, noncustodial wallets and blockchain software as banking institutions, calling the situation "troubling" due to clarity issues surrounding the registration process.
She also illuminated the complexities around redefining the classification of exchanges with regards to the broker/dealer law. She stressed that the idea of decentralization strongly contrasts with the typical SEC functioning. She mentioned the struggle for the SEC to handle situations where code is used for interaction instead of people or establishments.
She also noted that it isn’t necessarily the SEC’s task to adapt themselves to crypto, but rather their job is to expose where securities laws are impacted to guide people towards obtaining disclosure in the case of securities and enable people to reach their own conclusions.
On February 6, new regulations were introduced by the SEC necessitating more market participants to register with the entity and adhere to federal securities laws, thereby ushering DeFi into increased observation.
Pierce added that currently, the SEC is exclusively focusing on enforcement mode, emphasis should be laid on devising means to enable projects to thrive and attain decentralization without the risk of facing legal action. The Commissioner covered an array of topics related to crypto, including the possible future of the Agency post the U.S. Presidential election this year, spot Bitcoin ETFs, and CBDCs along with the haunting possibility of state financial scrutiny.
Published At
3/1/2024 6:54:15 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.