Hester Peirce, one of the more progressive commissioners at the Securities and Exchange Commission (SEC) spoke at the Securities Enforcement Forum, which was held on Thursday.
Earlier Crypto-News India had reported that the SEC was all set to organize a forum for blockchain and cryptocurrencies, end of this month.
Peirce chiefly talked about her concerns pertaining to regulations and the overreaching consequences it may have, if the federal body imposed a blanket ban on cryptocurrencies and related products, without delving deep into understanding the technology.She spoke about how the SEC has not been very clear with laying down guidelines.
She said, “Forbearance on the part of a regulator is often appropriate, especially in the interest of allowing market forces, rather than knee-jerk regulatory impulses, to shape a developing industry. The problem is that the securities laws do not cease to operate as a new industry develops. Consequently, individuals and companies in the industry must comply with our securities laws or risk becoming the subject of an enforcement action. It is therefore our duty as a regulator to provide the public with clear guidance as to how people can comply with our law. We have not yet fulfilled this duty.”
Last month, Peirce, affectionately dubbed as Crypto Mom, spoke to students at the MIT Bitcoin Expo, where she emphasized and reiterated the importance of self regulation.
At the time she had 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.”
Commissioner Peirce talked about how earlier the Chairman of SEC, Jay Clayton had deemed that every Initial Coin Offering (ICO) was a security. She further stated that the body has come a long way since last year and talked about new changes that have been introduced since then. She said, “Since last year’s speech, we also established FinHub to provide a common contact point and center of organization for all things financial technology at the SEC. Valerie Szczepanik, who oversees FinHub, has conducted several outreach events to engage those working on crypto issues. Indeed, just last week, she held one of FinHub’s so-called “peer-to-peer” events in the SEC’s Denver office. These P2P events are opportunities for people working in this space to interact directly with the SEC staff.”
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