SEC Commissioner Hester Peirce, also known as ‘Crypto Mom,’ has voiced her support for greater decentralization within the U.S. financial landscape.
Speaking at the ETHDenver conference on 29th February in a discussion with CNBC’s MacKenzie Sigalos, Peirce emphasized the advantages of decentralization for the country’s financial system.
Remarking on the same, Peirce added,
“Centralization means that you have concentrated risks.”
Peirce strong take on decentralization
Hester also advocated for a more lenient approach to regulating and enforcing policies regarding cryptocurrencies.
“Decentralization can actually bring resilience and strength to the financial system. So I’d love to see more resilience and strength … points of centralization always keep me up at night.”
During her discussion, Peirce expressed concerns regarding proposed legislation aimed at categorizing decentralized technologies, such as network nodes, validators, and noncustodial wallets, as financial institutions.
She highlighted the ambiguity surrounding registration requirements, emphasizing the need for clarity in regulatory frameworks.
Addressing the potential impact of the broker/dealer rule on decentralized finance (DeFi) and developers, Peirce underscored the inherent challenge faced by regulatory bodies like the SEC in navigating the decentralized nature of these platforms.
She emphasized,
“The whole concept of decentralization stands very much in contrast to what we’re used to at the SEC.”
It’s time to soften crypto regulation…
Peirce emphasized the complexity that decentralized technologies pose for regulatory bodies like the SEC. She also clarified the SEC’s role, and stated,
“Our job is to figure out where the securities laws are implicated to try and help people get disclosure where there are securities, and then let people make their own decisions.”
Lastly, she noted that the SEC is presently in “enforcement only mode.” However, she emphasized the necessity of provisions enabling projects to evolve into decentralized entities without the risk of litigation.
“You don’t go after people that are asking for clear rules on how to proceed in this space.”
In conclusion, Hester Peirce’s insights offer valuable perspective on the shifting regulatory landscape and its impact on the cryptocurrency industry.
