United States SEC Commissioner Hester Peirce, a vocal advocate for crypto, acknowledges that she shares the frustrations experienced by crypto developers who must navigate regulatory obstacles.
She emphasizes her understanding of the challenges those in the crypto industry face as they contend with regulatory complexities.
Peirce Advocates Clear Regulatory Path for Crypto Developers
In a recent Fireside chat at ETHDenver, Hester Peirce asserted that individuals in the crypto industry ought to have the freedom to concentrate on innovating without worrying about inadvertently conflicting with regulatory frameworks.
“What I reflect is the fact that you all are spending part of your brainpower thinking about ‘how do I build this in a way that sort of avoids those areas of regulatory ambiguity.”
Peirce, a vocal advocate for crypto, recently expressed support for approving spot Ethereum ETFs, citing the SEC’s recent approval of spot Bitcoin ETFs.
She recommended using Bitcoin ETF approval as a precedent for a broader range of crypto ETFs.
Peirce reiterated that the uncertainty around regulations in the United States is making it difficult for crypto firms to operate clearly, a point made by many in the industry.
She contended that the market, not lawmakers, should naturally determine how the crypto industry operates.
“If you really want to sort the bad behavior from the good behavior, having rules that are clear to people who want to follow them is a much better approach.”
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The crypto industry has long been fighting against US regulators for more clarity on regulations.
Following the collapse of crypto exchange FTX in November 2022, Coinbase CEO Brian Armstrong argued that the SEC has failed to create regulatory clarity in the United States.
Crypto Regulation Faces Prolonged Uncertainty
As a result, many American investors and 95% of trading activity went offshore.
However, Peirce suggested that most of the crypto industry wants to understand the rules better. This is so they know the boundaries of what their crypto firms and companies are allowed to do.
“I think you don’t go after people who are asking you for rules around how to proceed in the space.”
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On January 15, Circle chief executive Jeremy Allaire said there was a “very good chance” that stablecoin regulations would be passed in the US in 2024.
Meanwhile, on February 6, US Treasury Secretary Janet Yellen testified before the US House Committee on Financial Services. She highlighted the urgent need for laws to address risks in the crypto industry.
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