SEC Commissioner Hester Peirce Voices Support for Internal-Regulation in Cryptocurrency Market
The implementation of regulations in the crypto space is a hot button issue since investors are historically split on this concept. While many economies see the regulations as a way of establishing the ways that these assets can work within their own country, there are major proponents who believe that this is a step in “controlling” cryptocurrencies. The whole point of cryptocurrency is freedom, making the balance a difficult one.
On March 9th, during a public talk at the MIT Bitcoin Expo 2019, the United States’ Securities and Exchange Commission (SEC) Commissioner Hester M. Peirce and former Commodity Futures Trading Commission (CFTC) chairman Gary Gensler spoke on the topic. Peirce, who is also affectionately referred to as “Crypto Mom,” commented that she is in favor of self-regulation in the crypto market, if at all possible. Her comments were a response to a proposal from Gensler, who favors a strict and unified approach to the regulatory framework in the industry.
Gensler stated that a national level regulation would be the best option to protect the interest of investors, reduce the risk of money laundering, and reducing the discrepancies in these policies at a state level. Peirce’s flexible approach was more trusting in the people involved, stating that individuals manage to regulate their interactions with each other typically, which she sees as
“the whole purpose of the Bitcoin idea.”
She believes that the people in the community should have to find solutions to the problems that they face and, while she recognizes that a government regulator would be one model, there are other models the government could take on.
Still, that does not mean that Peirce is against regulations. She added that there is a necessity for “clear regulatory guidelines,” but the government needs to essentially step back after that. Considering that she seems crypto as a private endeavor, there would logically be no need for government involvement.
Peirce took this opportunity to speak on the SEC’s stand on approving an exchange-traded fund that is entirely backed by Bitcoin. Noting the recent rejection against the proposal initiated by the Winklevoss brothers, she said that she believed the authority was acting “beyond our statutory authority,” and it should have been approved.
Peirce has been a positive force for the cryptocurrency community, and her stances are often supported by the proponents of cryptocurrency. Just last month, she said that establishing crypto regulation may be helpful, and would ultimately bring more freedom for the industry to grow and thrive.