The US Securities and Exchange (SEC) Commissioner Hester M. Peirce is in the crypto news today for arguing in favor of self-regulation for cryptocurrency markets when possible. Peirce spoke in a public talk together with the former Commodity Futures Trading Commission (CFTC) chairman Gary Gensler at the MIT Bitcoin Expo 2019 on March 9th.
Peirce’s comments were mainly focused on a proposal from Gensler that a more robust and a unified national level regulatory framework is desirable. According to her, this would cover not only the trading platforms that offer security tokens or complex investment instruments – but also the ones listing commodities such as Bitcoin (BTC).
“One really important thing to remember is that people regulate each other in their interactions with one another, and that’s the whole purpose of the Bitcoin idea, that it would be a community that would be able to regulate itself. As problems arise, people in that community are thinking about how to deal with those problems. One model would be to have a government regulator, but I don’t think that’s the only model,” Peirce explained.
Gensler, on the other hand, argued in favor of extending national level regulation over a broader spectrum of crypto trading that is centered on improving investor protection, coordinating money laundering prevention as well as addressing the current regulatory and enforcement discrepancies across different users.
Peirce emphasized the status quo that is ongoing in this regulatory fragmentation and then stated:
“That’s the regulatory model we’ve chosen. I think, again, these markets could regulate themselves if we lived in a world where we allowed that.”
She continued to advocate for a lighter regulatory effort whenever possible, affirming that security offerings must comply with the SEC’s registration requirements while supporting the ongoing efforts by major crypto trading platforms to register with the agency as either exchanges or alternative trading venues so that they could list security tokens.
All of this has made the latest news in our regulation category. What’s clear at this point is that SEC’s and CFTC’s involvement rises when it comes to regulating new coins and markets. For more information and news about such decisions, keep on reading our website!
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