SEC Commissioner Hester Peirce, better known as “Crypto Mom” in the community, criticized the SEC for not admitting sooner that crypto tokens are not securities by default. While speaking at the Practising Law Institute’s SEC Speaks conference in Washington, D.C., she stressed the negative effects SEC’s regulatory ambiguity is having on the crypto industry and the finance industry at large. She urged the agency to be precise and clear to speed up innovation within the sector.
🚨BREAKING: Hester Peirce, SEC Commissioner, states that the agency “should have admitted long ago that Crypto tokens are not securities.” pic.twitter.com/Z5tOD7rU2A
— SolanaFloor (@SolanaFloor) September 24, 2024
Her comments reflect what most investors and entrepreneurs within the crypto ecosystem have in general.
Hester Pierce being a champion for crypto industry
Hester Peirce earned the nickname “Crypto Mom” due to her supportive stance on blockchain technology and her push for a more open, innovation-friendly regulatory framework for cryptocurrencies. Over the years, she has consistently called for a clear set of rules, instead of letting court cases and enforcement actions drive regulation.
Key Moments in Peirce’s Advocacy for Crypto:
- February 2020:
- Proposed a three-year grace period for crypto startups to develop their projects without fearing enforcement action. She said, “The idea is to provide regulatory clarity while allowing innovators to grow”
- April 2021:
- Peirce expressed concern about the SEC’s lack of clear rules and it’s over-reliance on enforcement, which she believes deters innovation.She said, “We have not provided the level of clarity that we should have, and I think that’s a fair criticism.”
- May 2021:
- Voiced strong opposition to the SEC’s repeated denial of Bitcoin ETFs, citing inconsistent standards. She said, “The SEC has left investors without a choice to invest in a product they want.”
- April 2023:
- Peirce emphasized the need for the SEC to distinguish between crypto tokens and securities contracts. She said, “We should have long ago admitted that the token itself is not necessarily a security.”
What to Expect from the SEC on Cryptos in the Near Future
The SEC is now under rising pressures both internally and externally. Increasing speculations point in the direction that the authority will now develop a more clear regulatory framework for cryptocurrencies. While the chair of the Securities and Exchange Commission took an overly aggressive stand against crypto, Peirce still believes in promoting pro-active rule-making so that businesses can carry out activities lawfully in the US.
Though Peirce’s proposal, specifically her Token Safe Harbor, might open the door for a more fluid approach, it remains unclear whether the broader SEC will adopt her vision. In the near term, however, the agency is likely to continue its aggressive enforcement, particularly in cases of unregistered securities offerings in the crypto space.
Source: https://www.cryptonewsz.com/hester-peirce-sec-crypto-tokens-not-securities/