SEC Comm’r Hester Peirce shares her stance on current crypto climate

• SEC Commissioner recently shared her thoughts on crypto regulation in a podcast with Bankless.
• Commissioner Peirce revealed that the SEC is a potential contender for the regulator of centralized crypto agencies.

Hester Peirce, one of the five commissioners of the United States Securities and Exchange Commission (SEC), recently appeared in a Bankless podcast.

While expressing her opinions in the podcast, Commissioner Peirce commented on the recent developments in the crypto market and shared her thoughts on the relationship of the securities regulator with the crypto industry. 

Regulation of centralized crypto entities is needed

Speaking on the relationship between the SEC and the crypto industry, SEC Commissioner Hester Peirce emphasized the need for the regulation of centralized crypto entities. This, given the events that transpired in the crypto industry over the past year.

Well, in case a regulator is appointed, Peirce revealed that the SEC will be the potential candidate to be the agency to regulate trading platforms that issue tokens.

Commissioner Peirce expressed some degree of comfort with decentralized crypto entities, adding that the decentralized model solves several problems that regulation seeks to address since everything is open source and transparent. 

When asked about the shutting down of crypto exchange Kraken’s staking services in the United States, Commissioner Peirce had an interesting reply.

She stated that her dissent of the decision was based on the regulator’s approach of jamming everything up as opposed to coming up with solutions for unique products. 

The SEC apparently came up with a tailor-made regulatory regime for the asset-backed securities, and Peirce suggested that the same was possible for crypto assets as well.

Commissioner Peirce believes that the SEC’s approach of enforcement rather than guidance has been an inefficient method of regulation.