Peirce voiced her disagreement with an SEC proposal regarding crypto custody, arguing that it is overly restrictive and could hinder investor access to crypto. She also addressed the fallout of the 2022 bear market, emphasizing that innovative technologies need time to mature. Peirce criticized the SEC’s enforcement action against blockchain firm LBRY, suggesting that the resources used for the hefty penalty could have been better used to create a regulatory framework for companies like LBRY. She questioned whether the Commission’s focus on enforcement discourages innovation in blockchain technology.
Key takeaways:
- SEC Commissioner Hester Peirce criticizes the U.S.'s inadequate regulation of cryptocurrencies, stating that it allows fraud to thrive and stifles innovation.
- Peirce calls for more clarity from Congress regarding the SEC’s role in regulating digital assets, suggesting that clear guidance would help define the boundaries between traditional securities and digital commodities.
- She voiced her disagreement with an SEC proposal regarding crypto custody, believing it to be overly restrictive and potentially hindering investor access to crypto.
- Peirce criticized the SEC’s enforcement action against blockchain firm LBRY, arguing that the hefty penalty sought could have been better used to create a regulatory framework for companies like LBRY.