After years of ignoring the cryptocurrency industry in hopes that it will go away on its own, the US SEC has finally recognized that digital currencies are here to stay. This has been clear in the regulator’s mind for some time, but unfortunately, most of its efforts went into hunting down ICOs that sold unregistered securities in 2017.
However, with the adoption skyrocketing, the US SEC has recognized that the importance of bringing a regulatory framework should be the top priority. At least, that is what the US commissioner on the Securities and Exchange Commission, Hester Peirce, recently stated.
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In a recent interview, Peirce said that the current crypto regulation laws in the country are very limited and unclear, which needs to change. The country needs a clear regulatory framework that would protect investors, but also grant them the ability to participate in digital assets investments, as well as other asset classes, she said.
The difficulty of creating a regulatory framework
Peirce believes that the SEC can develop a clearer and more reliable framework for crypto that would allow investors to move forward without concern. As for how easy or difficult would it be to come up with the framework, Peirce noted that she herself came up with a piece of the framework that she submitted for review and comments.
As for the rest of it, she did admit that there are many difficult and tricky aspects, but that working with people knowledgeable about this technology could allow the SEC to eventually complete the framework.
Speaking of risks involved with crypto, she said that the existence of fraud in the space is undeniable, and investors and other participants need to be extremely careful. In terms of the systemic type of risks, there are connections between crypto and traditional finance, and those are areas that the regulators already give a lot of attention to. In the end, Peirce stated that she sees a lot of potential in crypto and its technology, but there is a lot of work to be done before the market can be properly regulated and safe.
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