A commissioner of the U.S. Securities and Exchange Commission (SEC) says actual decentralized projects are a challenge to crypto control. “Decentralized money carries some power of self-regulation within itself,” the commentator said, adding that “we need to consider this when designing a regulatory system.”
SEC Commissioner Pierce discussed crypto regulation and decentralized money
In an interview with Yahoo Finance published last week, SEC Commissioner Hester Pierce spoke about cryptocurrency regulation. Pierce is also known as the “Crypto Mother” for his knowledge and support of crypto space in the crypto community.
He was asked if the SEC has any problems in improving crypto space and protocols that are advancing and changing very fast on a daily basis.
“There are definitely difficulties on the part of the regulator to stay at the top of Daffy’s development [decentralized finance] And crypto in general, ”Pierce admitted. However, he noted:
People should not assume that the SEC can focus on just one issue. The SEC has a lot of resources and can go after many things at the same time.
“So, be aware of this and you need to think about whether the securities law applies to what you are doing and whether you should consult with lawyers if necessary,” he recommended.
The commissioner added: “The decentralized world is very new to us because we are used to dealing with large, usually large, centralized intermediaries. So truly decentralized projects pose a challenge.” Pierce warned:
I think what I would warn people to be aware of is that sometimes something demands decentralization and it doesn’t, and there is actually a centralized entity and I think regulators must be looking at that centralized entity.
SEC Chairman Gary Gensler similarly said that many of the platforms claiming decentralization were actually centralized. He told Senator Elizabeth Warren in September that many platforms were “decentralized in name only,” referring to “a user agreement.” In addition, he said many of the tokens listed on cryptocurrency exchanges are actually securities, telling Congress that they need more control.
Pierce further explained:
Decentralized money carries with it some power of self-control. And I think we need to take that into account when designing a regulatory system.
Commenting on the cryptocurrency regulation, the commissioner said, “It is frustrating to me that for three years I have been asking for regulatory transparency and we have not been able to give anything.”
He added: “I think it’s becoming a huge hurdle for the industry to be able to develop in a way that is safe but also in a way that innovation can happen. And it’s really embarrassing to me that we’re not just taking mantles as regulators to develop regulatory structures. .
What do you think of SEC Commissioner Hester Pierce’s remarks? Let us know in the comments section below.
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