The possibly only member of the U. S. Securities and Exchange Commission (SEC) which is loved by the crypto community, Hester M. Peirce, is currently worried that regulators are moving way too slowly in order to regulate the crypto ecosystem that is being created in the country.
She spoke while addressing some other regulators on the Securities Enforcement Forum, which happened in Palo Alto, California, at the heart of the Silicon Valley. According to her, she was already concerned about a year ago that the slow regulation provided by the SEC would stifle the local growth of the blockchain tech and put the U. S. behind the rest of the world.
Hester affirmed that she was wrong before because it was not a question of whether the SEC would stiffle innovation but how it would do it. Instead of being too heavy-handed in enforcing innovation, the SEC has been too slow on proposing regulation and clarifying it, which is a whole new problem.
She believes that her worries were actually wrong as the SEC did not impose a harsh regulation but it simply stood still while it should have been taking care of the crypto space instead. It is waiting too much time before taking any kind of meaningful action to help the ecosystem that is being created at this very moment.
Acording to Hester Peirce, the SEC has done a great deal of effort in order to reach out for some companies, but the problem is that some its tools, like the Howey test, which deems whether something is a security or not, are considerably out of date in her opinion.
She did credit the SEC for being open to communicate with all the new startups, though, as she affirmed that the FinHub created by the SEC was a good measure on the entity’s part and that it was helping in startup outreach.
The problem, though, is that some aspects are moving way too slowly like the SEC simply do not providing any kind of guidance for some core questions which innovators want to know about. For instance, several companies interested in entering this market are basically in waiting mode as the agencies decide when to answer their important questions.
She ended by affirming that the securities market of the United States was always considered to be the “envy of the world” and that the heel-dragging by the SEC can actually turning this reputation into dust, so she is making an effort to call out her colleagues so they can regulate the market better.