SEC Employee Slams Gary Gensler’s Regulatory Regime in US: “We Are Shooting Ourselves in the Foot”

The post SEC Employee Slams Gary Gensler’s Regulatory Regime in US: “We Are Shooting Ourselves in the Foot” appeared first on Coinpedia Fintech News

The crypto industry is currently in a state of anticipation as it awaits a resolution in the prolonged legal battle between XRP and the SEC. The outcome of this case will likely have far-reaching implications for the industry as a whole. At a recent Financial Times conference, as reported by Reuters, Hester Peirce, a commissioner at the U.S. Securities and Exchange Commission, expressed her pessimism regarding the current regulatory framework in the United States.

According to Peirce, there is unlikely to be any clear and definitive regulatory guidance for the crypto industry in the near future. Peirce has been a vocal opponent of the SEC’s enforcement actions and has publicly criticized the stance of SEC Chair Gary Gensler on numerous occasions.

“If we built a good regulatory regime, people would come. I think you will see that with MiCA. We are shooting ourselves in the foot by not having a regulatory regime in the U.S.,” Peirce said.

After the SEC’s announcement on April 14 that it intends to broaden the definition of ‘exchange’ to include decentralized finance (DeFi) platforms trading cryptocurrencies, Peirce issued a statement in response. Titled “Rendering Innovation Kaput,” Peirce’s statement was critical of the SEC’s proposal, citing concerns that it could stifle innovation in the crypto industry.

“Stagnation, centralization, expatriation, and extinction are the watchwords of this release. Rather than embracing the promise of new technology as we have done in the past, here we propose to embrace stagnation, force centralization, urge expatriation, and welcome the extinction of new technology. Accordingly, I dissent,” she wrote.

Peirce has also expressed her admiration for the European Union’s swift development of its digital finance package. On April 20, the European Parliament approved the Markets in Crypto-Assets (MiCA) regulation, which provides a regulatory framework for the cryptocurrency industry in the European Union. The new legislation will bring the issuance of cryptocurrencies under institutional regulation and create a uniform regime for crypto-asset service providers across EU member states.