Hester Peirce, a Commissioner of the United States Securities and Exchange Commission, also known as “Crypto Mom”, has said that any attempt by the U.S. regulators to impose strict regulatory policies on the crypto industry could stifle innovation in the country.
Hester Peirce Calls for Self-Regulatory Framework
In an interview with Financial Times on Tuesday (June 8, 2021), Peirce expressed concerns about U.S. regulators wanting to enforce strict regulatory policies for the cryptocurrency industry. According to Peirce, handling the crypto sector too strictly is risky, as it could deter investors.
This is not the first time the SEC Commissioner is speaking in favor of the cryptocurrency industry. Back in April, Peirce stated that it would be a foolish thing for the U.S. government to ban bitcoin, adding that it was impossible. An advocate of robust crypto regulations, Pierce has always focused on friendly policies that would encourage innovation.
Chairman of the SEC, Gary Gensler, is also looking to bring the crypto industry under control like other markets. In May, Gensler told the members of the U.S. Congress that it was important to establish a law that would clearly state which regulatory body would supervise crypto exchanges.
Peirce, however, believes that not all regulatory policies should be done at the government level, stating that effective self-regulation could also work.
“I am concerned about trying to make it harder for people to do truly peer-to-peer transactions . . . I think regulation doesn’t all have to happen at government-level. You can have pretty effective self-regulation.”
Japan has already established a self-regulatory framework for the crypto industry. Back in April 2020, the Financial Services Agency (FCA) officially recognized two self-regulatory organizations which work with the government regulators to monitor the nascent industry.
The SEC Commissioner’s statement came amid signs from the U.S. government to tighten the noose on the crypto industry. As reported by BTCManager back in May, the U.S. Treasury released a new guideline that mandates crypto exchanges and trading platforms to report transactions that exceed $10,0000 to the Internal Revenue Services (IRS).
The Senate Banking Committee, on the other hand, will meet on Wednesday to discuss a digital dollar issued by the Federal Reserve.