Hester M, Peirce, a commissioner with the United States Securities and Exchange Commission (SEC), has come out to deter financial authorities and institutions across the world from adopting a singular approach to regulating the crypto industry.
Popularly known as “Crypto Mom” in crypto circles, Peirce made her stance known speaking at the Convergence Forum of the Singapore University of Social Sciences. She centered her speech on the crypto market and what regulators need to do for the growth of the industry.
Speaking on the prospect of regulation, Peirce commented that as the market for crypto assets continues on its growth path, it is now more critical than ever for financial authorities to cooperate on the issue of regulation. She confirmed that communication would be important in the mission to provide regulatory transparency, although she added that there should also be a limit to cooperation as well.
In part, she said, “While I believe a single global regulatory framework would be unwise, regulators can create a healthy environment for this new market to grow by sharing information that will smooth cross-border transactions while stamping out fraud and other harmful activity.”
Peirce also commented on the possibility of the United States falling behind in the crypto market as a result of lackluster regulatory standards.
Over the past months, the crypto market has come under severe scrutiny from Washington, with U.S. President Donald Trump posting on Twitter that he isn’t a fan of cryptocurrencies themselves. Steve Mnuchin, the Secretary of the U.S. Treasury, reinforced this stance days later, while also adding that the crypto market will soon be hit with “very, very strong” regulations.
I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air. Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity….
— Donald J. Trump (@realDonaldTrump) July 12, 2019
So far, the attacks by the Trump administration haven’t had many effects on the crypto market, with Bitcoin trading at over $10,500 (at press time, per CoinMarketCap) and other assets posting adequate numbers as well.
However, Peirce is of the belief that this continued scrutiny on cryptocurrencies could drive cryptocurrency exchanges and other companies that are looking to innovate out of the United States altogether. She said, “I often have expressed my concern that the U.S. will fall behind other countries in attracting crypto-related businesses unless we are more forward-leaning in establishing a regulatory regime with discernible parameters.”
The issue of innovation and the crypto space is one that Peirce has always been concerned about. While at a Securities Enforcement Forum in East Palo Alto back in May, she openly criticized the SEC for its habit of dallying on the issue of crypto regulations, adding that it is stifling innovation in the space.
In Singapore, Peirce also complained about a large number of regulators which could eventually have oversight of cryptocurrencies. “One of the peculiarities of the U.S. system is the sheer number of regulators. Not only do we have the state-federal allocation of responsibility that I just mentioned, but we have multiple federal financial regulators,” she noted.
Regardless, however, it would seem that things are looking up. The U.S. Senate held a debate on the prospect of cryptocurrency regulations during the week, and while the resolutions of the meeting are yet to be known, many are of the hope that it would be a significant step to ending the fight for regulatory classifications once and for all.