Cryptocurrency News

SEC commissioner Hester Peirce says stricter crypto laws will stifle innovation

Hester Pearce of the United States Securities and Exchange Commission has once again urged regulators to take a step back from attempting to overregulate the crypto space.

Speaking to the Financial Times, Pearce affectionately dubbed “Crypto Mom” ​​because of her positive stance on cryptocurrencies, argued Against the need for strict regulatory policies.

According to Pearce, regulators by nature often react knee-jerk in emerging market places, often at the expense of innovation.

The SEC commissioner warned that adhering to strict regulatory policies eliminates the ability of market participants to conduct peer-to-peer transactions. Instead of emphasizing government regulations, Peirce advocated industry-led regulatory activities.

Indeed, the commissioner is a longtime proponent of crypto self-regulation. Back in March 2019, Pearce made the case crypto self-regulatory organization In Debate with current SEC Chairman Gary Gensler.

Pearce is not the only US regulator advocating for crypto self-regulation. As previously reported by Cointelegraph, Commodity and Futures Trading Commission commissioner Brian Quintenz told industry stakeholders that create a self-regulatory framework Back in February 2019.

Japan remains an example of an Somewhat Effective Crypto Self-Regulation Liaise with government regulators on important legal and policy matters with the country’s cryptocurrency SROs.

Peirce’s latest call for micro-crypto policies comes amid signs of a significant push for tighter cryptocurrency regulations in the United States. Treasury Secretary Janet Yellen and SEC Chair Gary Gensler have both stated their intention to monitor the market closely.

The Internal Revenue Service called on Tuesday Power of Congress to Regulate Cryptocurrencies. Back in May, the Treasury Department announced a new plan to ensure crypto service providers Report transactions worth more than $10,000.

Meanwhile, the Senate Banking Committee will hold a session on Wednesday to discuss issues related to a potential Federal Reserve-issued digital currency. Reports indicate that the discussion may move towards the broader crypto market as well.