In a current interview, Securities and Trade Fee (SEC) Commissioner Hester Peirce opened up about cryptocurrency regulation, particular goal acquisition corporations (SPACs), and cash market fund reform.
Commissioner Peirce acknowledged the challenges posed by the cryptocurrency trade by way of transparency. She pressured the significance of balancing the necessity for transparency with the evolving nature of blockchain know-how.
In a conversation with Blockworks Macro, Peirce recommended that whereas the SEC has a protracted historical past of being a disclosure regulator, it also needs to acknowledge the distinctive options of blockchain know-how. She talked about that some features of the crypto area, reminiscent of on-chain transparency, are new and completely different and must be leveraged.
“I believe it’s a very lively time on the SEC. The variety of rulemakings and the variety of actually huge rulemakings which might be occurring is sort of astounding. In the event that they’re all adopted, we’ll basically change how our markets work. So it’s an lively time; there’s quite a bit to study and work on.”
She defined that tokens are only one a part of the image within the digital asset world and don’t routinely depend as securities. The USA has a broad definition of what qualifies as a safety, which incorporates conventional belongings like shares and bonds, nevertheless it additionally encompasses issues like funding contracts.
Relating to making use of this take a look at to cryptocurrencies, it may be tough. Typically, it’s not simply the asset itself that issues but additionally any guarantees that include it, whether or not clear or implied. It’s important for regulators and trade gamers to be exact about assessing whether or not one thing qualifies as a safety.
“I believe we are able to all sit down and take into consideration crypto and determine some issues that labeled themselves as crypto that then actually went to city and ripped individuals off and on the SEC one of many issues that we do as a fee is we evaluate these Enforcement circumstances,” she added.