Commissioner Peirce suggests SEC to work with crypto businesses to build a “reasonable framework”

Commissioner Hester Peirce, aka “crypto mom” strikes back at the SEC for not working with crypto businesses in carving out a reasonable framework for the securities laws. Peirce spoke remotely at the Wall Street Journal’s Tech Live conference on Wednesday and continued to criticize SEC Chief, Gary Gensler on his anti-crypto stance.

Furthermore, Peirce suggested that the commission should decipher a system to work with cryptocurrency firms, given the inevitable growth of the decentralized industry. The Commissioner noted that the sooner regulators understand the importance of crypto, the better it will be in foreseeable future for the nation’s financial markets.

“I think it’s safe to assume that crypto is going to grow in size…And so what we can do now to invest in building a reasonable framework, I think, will pay off down the line.”, said Peirce.

SEC rules are affecting small businesses

The Commissioner highlighted the authorities’ perspective, noting that the conservative approach is to steer clear of accusations if anything goes south. However, Peirce also emphasized that this conservative approach negatively targets start-ups and smaller businesses, as they get caught up in the “tremendously hard” and time-consuming process of complying with SEC rules.

“Regulators tend to be very conservative for a reason…If something doesn’t get approved, we’re not going to get blamed; if something does get approved and something goes wrong, we will get blamed. But that hesitation is really costly for smaller entities.”, Peirce added.

SEC failure to draw up a clear legal framework

Earlier this month, Commissioner Peirce was seen in her ‘crypto mom’ form, criticizing the government for its inability to finalize a clear legal framework for virtual currencies in the United States. At Yahoo Finance Live, Peirce noted that “it’s a real shame” that the US regulators’ are consistently failing at drawing up a clear legal framework for cryptocurrencies and securities.

“It is disconcerting to me that for three years now I’ve been asking for regulatory clarity, and we can’t seem to provide any…I think this is really becoming a huge barrier to this industry being able to develop in a way that’s safe, but also in a way that allows innovation to happen. And it’s a real shame to me that we are not just taking up the mantle as regulators to develop a regulatory framework.”

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