Securities and Exchange Commission (SEC) Commissioner, Hester Peirce has been dubbed as ‘Crypto Mom’ for her progressive views on cryptocurrencies and self-regulations as compared to her conservative peers.
The commissioner was addressing a room of students, on the importance of self-regulation, last week. She was joined by former Commodity Futures Trading Commission (CFTC) commissioner Gary Gensler, at the MIT Bitcoin Expo which was held on Saturday. Gensler was proposing for more “robust” and “nationwide” set of regulations for the cryptocurrency industry.
However, Peirce said, “One really important thing to remember is that people regulate each other in their interactions with one another, and that’s the whole purpose of the Bitcoin idea, that it would be a community that would be able to regulate itself. As problems arise, people in that community are thinking about how to deal with those problems. One model would be to have a government regulator, but I don’t think that’s the only model.”
Gensler’s comments in favour of nationwide regulations were made centering around improving investor protection, coordinating money laundering prevention and addressing the current regulatory and enforcement discrepancies, across different states in the United States of America.
Countering him she said, “That’s the regulatory model we’ve chosen. I think, again, these markets could regulate themselves if we lived in a world where we allowed that.”
Peirce shot into limelight as ‘Crypto Mom’ when she penned a very strong note dissenting against the rejection of Bitcoin Exchange Traded Funds (ETF) application filed by the Winklevoss twins last year. Since then, she has been very vocal about how cryptocurrencies require minimal interference from state mechanisation.
However, it has not always been a smooth ride for her. In the past, she has said that she received many vexing Twitter DMs for her stance on cryptocurrencies from investors who lost their money. She had said, “A range of messages, some blaming me for having lost all their money in crypto and some offering to give me their perspectives on what’s going on in crypto. I do prefer if people reach out directly to my office. It’s just an easier way to be able to communicate with people. I’m not particularly quick at responding to the DMs.”
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