SEC official Hester Peirce said there was a struggle to figure out “how to regulate crypto efficiently.”
Peirce noted that the SEC is trying to plant its regulatory flag after its enforcement actions over the past week. Hester Peirce, a commissioner at the regulatory agency, said the Securities and Exchange Commission is trying to “plant the regulatory flag,” while Congress has yet to decide which agency will oversee crypto.
Other Draft Laws on the Agenda
SEC’s Hester Peirce spoke about regulations and regulators in her podcast with The Block.
The SEC issued sanctions against crypto platforms and individuals last week. The regulator has filed charges against Terraform Labs CEO Do Kwon for the crashed algorithmic stablecoin Terra USD. The SEC then charged former NBA player Paul Pierce for illegally promoting a token.
Hester Peirce, the only Republican commissioner of the SEC, said in an interview with Frank Chaparro: “We’re going to struggle for a while until we can actually regulate cryptos efficiently.”
Peirce added that much of what happens next depends on Congress and the regulatory agency that will be chosen.
Lawmakers have introduced broader laws to regulate parts of the industry, as well as smaller bills that should be reintroduced this year.
Apart from all these, there are also some laws that are planned to be introduced in the near future. For example, Republican Senator Thom Tillis from North Carolina is drafting a bill that would require digital asset exchanges and custodians operating in the United States to provide independently verified proof of reserve for their assets. At the Senate Banking Committee session on February 14, Massachusetts Democratic Senator Elizabeth Warren pledged to reintroduce a bill that would tighten anti-money laundering rules for crypto firms.
Peirce has frequent disagreements with other commissioners in the regulatory agency. Peirce voted single last week against a proposed rule to tighten crypto custody requirements.
In an interview with Chaparro, Peirce said: “One of the problems we have is the possibility that all these trading platforms have assets that no one thinks are securities,” and continued: “We are not used to platforms that trade non-securities as well as securities. This is a problem we have to solve.”
Peirce also underlined that the next two years will be important in terms of how the crypto money industry will develop in the long run.
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