SECHester Peirce, one of the commissioners at the United States Securities and Exchange Commission (SEC) known for her support of cryptocurrencies, has voiced her concerns over the lack of regulatory clarity in the digital asset space. Peirce’s comments highlight the growing need for a clear and comprehensive regulatory framework for cryptocurrencies in the United States.
During a recent statement, Commissioner Peirce expressed her surprise at the SEC’s perceived delay in establishing a regulatory framework for cryptocurrencies. She emphasized that when she joined the commission in 2018, she did not anticipate the SEC to be “this far behind” in addressing the regulatory challenges posed by digital assets.
Peirce pointed out that countries like Switzerland and Singapore have made significant strides in cryptocurrency regulation but cautioned against directly comparing their approaches to the complex regulatory landscape in the United States.
Despite acknowledging that there are individuals within the SEC who possess substantial knowledge of cryptocurrencies, Peirce expressed her disappointment in the lack of significant improvements in the regulatory environment since her appointment.
Criticism of the SEC’s approach
Under the leadership of Chair Gary Gensler, the SEC has faced criticism from industry leaders, regulators, and lawmakers for its perceived “regulation by enforcement” approach to digital assets. At the time of her statement, the SEC was actively involved in civil actions against prominent crypto firms such as Coinbase, Binance, and Ripple. Additionally, the SEC had yet to approve a spot Bitcoin exchange-traded fund (ETF) for listing in U.S. markets, further fueling concerns within the crypto industry.
In August, Grayscale Investments successfully appealed the SEC’s rejection of its spot ETF application, potentially opening the door to a review of the agency’s stance on cryptocurrency-related policies.
While Commissioner Peirce refrained from commenting on specific court cases involving the SEC, she encouraged institutions within the crypto industry to engage with the commission to chart a path forward. Peirce hinted at the possibility of a “change of heart” within the agency regarding its stance on crypto-related policies. She urged industry players not to lose hope and to continue seeking clarity in their interactions with the SEC.
“Don’t give up on the United States,” Peirce asserted, adding, “This too shall pass, the confusion shall pass. The United States is a good place to build things, and I want it to stay that way. But come forward with very concrete ideas, be thinking of concrete ways that you need clarity.”
Ongoing legal proceedings
At the time of her statement, legal representatives from the SEC were engaged in discussions with their counterparts from Binance.US during a courtroom hearing in Washington, D.C. The hearing focused on a motion concerning expedited discovery in the ongoing civil suit against Binance, one of the world’s largest cryptocurrency exchanges. The lawsuit is emblematic of the broader regulatory challenges facing the crypto industry in the United States.
This hearing came on the heels of Binance CEO Changpeng Zhao’s announcement that Binance.US CEO Brian Shroder would be taking a break from the company. Reports had also emerged of other executives departing from the exchange, underscoring the volatility and uncertainty surrounding regulatory issues in the crypto sector.
From Zero to Web3 Pro: Your 90-Day Career Launch Plan
