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Qadir AK
Qadir AK
Author
Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
- Dec 10, 2024 06:18 UTC
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SEC’s Hester Peirce Demands Fair Crypto Policies Under Trump
SEC Commissioner Hester Peirce advocates for regulatory clarity in the cryptocurrency industry.
Critics fear that increased regulation could stifle innovation and unfairly target crypto businesses.
The crypto industry seeks a balance between necessary regulation and fostering innovation.
In a recent interview with Fox Business, SEC Commissioner Hester Peirce, often referred to as “Crypto Mom,” highlighted the need for regulatory clarity in the cryptocurrency industry. Eleanor Terret posted on X that she addressed concerns around “Operation Chokepoint 2.0,” a term used to describe the ongoing regulatory crackdowns, and laid out a vision for how the SEC could better support the existing crypto space under potential new leadership during Donald Trump’s presidency.
Peirce’s Operation Chokepoint 2.0
Stressing fair rules, Peirce argued 3 key points that the SEC needs to rethink its approach to cryptocurrencies to help the industry grow.
First, she wants to remove unnecessary barriers, like restrictions on crypto services, so businesses can innovate without being held back. According to Peirce, lifting these barriers is essential for fostering development and ensuring the crypto ecosystem thrives.
Next up she has taken up is the SEC’s overreach on crypto assets basically to what extent the SEC can go. She emphasized the importance of clearly defining non-securities activities and entities, reducing confusion, and giving the crypto industry more freedom to innovate within known boundaries.
Finally, Peirce suggested collaboration between regulators and the crypto community to adapt existing rules. She advocated for a transparent, public process where stakeholders work together to identify necessary adjustments, ensuring regulations remain fair and relevant.
Crypto Reaction
While Hester Peirce’s suggestions to clarify SEC regulations have gained some support, there is still skepticism. Critics, like David Barrera, CEO of Enumma fear that her approach could result in more cryptocurrencies being classified as securities, which the crypto community opposes. The key concern is finding a balance between necessary regulation and allowing the industry to continue growing without too much restriction.
David Sacks, AI, and Crypto Czar also believe Operation Chokepoint 2.0 will unfairly target crypto businesses. He points to Silvergate Bank, which collapsed despite being financially stable, blaming regulators for making it harder for the bank to work with crypto companies. Sacks wants an investigation into these actions, saying they hurt innovation in the crypto world. As the new Crypto Czar, he’s pushing for fair rules to help the industry grow without unnecessary restrictions.
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On the Flip Side
Concerning the ongoing crypto fear, Coinbase recently revealed documents showing that the FDIC told banks to stop providing services to crypto businesses in 2022. These documents were obtained through a public records request. Coinbase’s Chief Legal Officer, Paul Grewal, pointed out that this proves there was a coordinated effort to limit access to banking for the crypto industry.
This is a much debatable topic as any rules created in the heat of the moment may have long-term implications on the entire crypto space which is waiting for clear and unfair rules.
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