SEC Commissioner Hester Peirce recommended against crypto in a speech at the Duke conference. She believes that the industry must also self-regulate to a certain extent.
United States Securities and Exchange Commission (SEC) Hester Peirce has once again made positive headlines in the crypto world. Peirce, affectionately known as “Crypto Mom,” spoke at a conference on digital assets at Duke University.
Peirce said last year’s incidents offer some important lessons for the future. She clarified that this is her point of view and that she does not represent the SEC and its other members.
Among the main points she made was the fact that “the value of Crypto depends primarily on the creators of this technology, not on regulators like me, who lack technical expertise and stand on the periphery watching.” As such, she believes those in the industry should not wait for regulators to fix the problems. She states that privately designed and voluntarily implemented solutions can work better in achieving this goal.
She also emphasizes that the point of crypto is not to make a profit through trading, but to solve trust problems through technology. In other words, she suggests focusing on valuable use cases.
Towards the end of her speech, she says that “instead of swiping left on crypto, we should remember that new technologies sometimes take a long time to find their footing.” She recommends instead allowing experimentation with the technology and not allowing strict regulation to get in the way.
Hester Peirce does not think that Howey’s test can be easily applied
Peirce has made several remarks about crypto regulation over the years. She was clear about her stance on bailing out the cryptocurrency, saying she would not support it, especially if the company was over-leveraged. However, she said that the crypto market has somewhat matured as early as 2021.
Peirce also disagrees with the current approach to regulation, saying the agency’s currency approach is not in good faith. She also sees problems in applying the Howey test to crypto assets, noting that the nuances of the crypto test do not lend themselves easily to the test.
Gary Gensler believes that checks are necessary
Peirce’s takes a somewhat significant crypto contrast to SEC Chairman Gary Gensler’s positions. He is adamant about the need for checks and has promised to crack down on crypto companies that don’t follow the rules.
Gensler said FTX’s collapse was part of an industry pattern, namely that these firms are lending clients’ funds to invest without proper disclosure. He also believes that crypto exchanges are highly centralized.
BeInCrypto has reached out to the company or individual involved in the story to get an official statement on the recent events, but has yet to hear back.