SEC’s Regulatory Stance on Cryptocurrency
In a recent interview on Bloomberg TV, Hester Peirce, a Republican Commissioner at the Securities and Exchange Commission (SEC) known for her pro-cryptocurrency stance, conveyed that the SEC will not delay its regulatory efforts while awaiting new legislation from Congress. Since the beginning of this year, the SEC has been actively working on framework guidance that applies existing securities regulations to the cryptocurrency market. Peirce highlighted the agency’s ability to operate effectively within its current authority.
Legislative Developments
Last month, the Senate Banking Committee unveiled a draft of a significant bill aimed at establishing a comprehensive structure for the crypto market. This legislative proposal has faced criticism from some in the industry, such as Ripple, who argue that it grants excessive regulatory power to the SEC. Peirce acknowledged the complexity of this bill, referring to it as a “very sophisticated piece of legislation that requires careful consideration.”
Collaboration and Outreach
She also expressed that the SEC is open to collaborating with both Congressional chambers in order to ensure that the forthcoming laws will constructively guide the evolution of the cryptocurrency sector. In a related initiative, SEC Chair Paul Atkins recently announced the start of “Project Crypto,” which seeks to modernize the application of securities laws. Peirce highlighted the progress of this project, indicating a productive and cooperative effort among SEC staff.
Engagement with Industry Leaders
Moreover, Peirce confirmed that the SEC is engaging in discussions with various industry leaders as part of its outreach efforts. The proposed market structure bill aims to delineate the authority of the SEC in relation to the Commodity Futures Trading Commission (CFTC). She emphasized the positive working relationship between the SEC and the CFTC, affirming their joint commitment to collaborate on these regulatory recommendations.
