Heather Peirce, Commissioner at the Securities and Exchange Commission (SEC), lovingly dubbed as Crypto Mom, spoke on cross border cooperation in regulation of digital assets, recently.
Addressing the Singapore University of Social Sciences (SUSS) Convergence Forum: Inclusive Blockchain, Finance, and Emerging Technologies, Peirce talked about cryptocurrencies and the challenges facing cross-border regulations.
She said, “The cross-border regulatory concerns in crypto track these standard concerns, but are magnified for several reasons. First, countries all over the world are still in the early stages of determining how and whether to regulate crypto. Uncertainty about what the rules in any particular country are makes a determination of which country’s rules apply even more difficult. Second, much of the allure of cryptocurrency is the ability to join people from all across the world in common enterprises, which makes pinning down a domicile for these enterprises difficult. Third, the precise nature—currency, commodity, security, derivative—of many of the assets at issue is difficult to determine.”
Peirce suggested that in order to come up with regulations, regulators would have to work in tandem with their foreign counterparts. She said, “I often have expressed my concern that the U.S. will fall behind other countries in attracting crypto-related businesses unless we are more forward-leaning in establishing a regulatory regime with discernible parameters. The U.S. SEC can look to our counterparts overseas for ideas in untangling some of our most difficult legal and policy questions in this area. Other countries, the citizens of which are already actively trading and using crypto currencies, are confronting the same questions we are as they create their own regulatory regimes.”
In May this year, Peirce had spoken about the points mentioned above. At the time she had 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.
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