Since the introduction of digital currency around the globe, its acceptance and use among the crypto community has continued to grow on a much wider scale with each passing day.
However though there have been recent hiccups most specifically with the Securities and Exchange Commission (SEC) which is an independent regulatory agency of the United States Federal Government that focuses on ensuring securities markets function fairly and orderly.
Hester Peirce: The cryptocurrency mother in the SEC speaks
Recently, the Commissioner of the United States Securities and Exchange Commission Hester Peirce expressed her fears that SEC’s unwillingness to be aggressive in learning more about cryptocurrency is negatively having an impact on the cryptocurrency industry.
She states that if this hesitance to get conversant with the crypto ecosystem continues, the rapid digital currency industry evolution will only be held up. Such consequences most recently being the geo-fencing of crypto- tokens by Poloniex have already shown.
Hester Peirce speaking in one of the commission's briefings (Source: SEC)
The Commissioner pointed out that the Securities and Exchange Commission (SEC) being a regulator has to ensure that players in its industry are issued clear guidance on how to comply with security laws (which it has still not done) since they will always apply regardless of any evolution in the industry .
“Come in and hold our hands a little bit”
According to her, the recently released SEC guidance was very immense and the people did not understand well the security laws. She states the problems the commission faces during the process of approval are caused majorly by the lack of understanding of the terms brought before them.
The submission of papers to the commission and a lack of follow up causes confusion on how the commission should weight any factors brought before them.
She further spoke on how some of the securities laws brought before them may be unfamiliar to them saying,
“I think we’re not thinking always that this is a space where you’ve got a lot of people, who haven’t thought about securities laws and how this is their first interaction with the securities laws and it’s a little overwhelming.”
Hester Peirce also referred to as crypto-mum because of her noticeable contribution towards fighting for Bitcoin’s exposure to an exchange-traded-fund by SEC, also encouraged people to be skeptic on what they were not fully conversant with. In a recent interview she said that regulators could make an effort in trying to understand the crypto ecosystem better.
Hester Peirce adds that she does not want any lagging moments in crypto by the SEC as it may destroy the world’s reputation of United States securities markets. The Commissioner also urges people stop over relying on the “SEC of approval” and encouraged users to always adhere to security laws when trading with digital currencies.
The process of establishing cryptocurrency regulation in the United States may prove to be a lengthy process but it will with no doubt prove beneficial allowing more freedom for the industry. Also with actual guidance, market flow will remain steady.