In the last six weeks, the Security and Exchange Commission (SEC) has begun to transition from its “assertive” and “overreaching” cryptocurrency regulatory stance to a more inviting one. Republican Commissioner Hester Peirce has provided some fresh perspective on the U.S. agency’s regulatory transformation and the forthcoming framework.
Crypto Regulations Aren’t A ‘Game Of Gotcha’
During an interview with Fortune, SEC Commissioner Hester Peirce elaborated on the regulatory body’s new industry-supportive approach, spearheaded by the recently formed Crypto Task Force, to create a definitive framework for digital assets.
Concerning the SEC’s choice to dismiss the majority of its ongoing crypto lawsuits, the Republican Commissioner asserted that the regulatory organization is “shifting in terms of how we consider whether to utilize our enforcement tools and when to utilize them.”
The SEC’s recent change has prompted the Commission to dismiss or delay numerous lawsuits against prominent crypto firms, including Binance, Coinbase, and Kraken, as well as conclude several long-term investigations, such as Gemini, Robinhood, and Yuga Labs, without taking any legal actions.
As per the report, Commissioner Peirce viewed most of those lawsuits as “premature,” yet warned that wrongdoers should not presume that entities associated with cryptocurrency will receive a “free pass,” as the SEC will “continue to pursue ‘standard’ securities infractions.”
Additionally, she contended that the law is “not intended to be a game of gotcha” and “it doesn’t make sense to involve numerous courts to examine this matter—a process that is lengthy—when we haven’t resolved it on our end yet.”
SEC’s Strategy To Be Partially Rolled Out This Year
The SEC’s recent actions follow the Trump administration’s attempts to halt the “forceful enforcement actions,” remove “regulatory overreach” concerning digital assets, and facilitate the growth of the crypto sector.
Peirce reportedly disagrees with the notion of having a “Mama government” to shield investors from “making poor decisions.” She mentioned that individuals can lose money on a variety of investments, which would significantly expand the SEC’s jurisdiction under that criterion.
If the benchmark of the SEC’s authority is based on the possibility of losing money on a purchase, our jurisdiction is extensive. However, that isn’t the mandate that Congress assigned to us.
The crypto-enthusiastic Commissioner has previously mentioned that the regulatory body is aiming to “return to a trajectory where we’re genuinely utilizing our other instruments to shape policy” instead of leveraging enforcement actions as “a methodology to create regulatory policy.”
“Some individuals bear significant scars from previous encounters with the SEC,” the Commissioner noted, emphasizing that it is time to reassess the situation. Peirce suggested that now the regulatory body can obtain public input since the crypto industry realizes they can communicate with the SEC’s team.
According to the report, she also confirmed that the SEC would proceed with developing its crypto regulatory façade despite awaiting Congress’ endorsement of the Trump-appointed SEC chairman Paul Atkins and regulations regarding market structure.
Peirce also remarked that “elements” of the agency’s agenda would be put in place this year, including clarifying the security designation of digital assets. Last month, she promised to formulate a regulatory framework that safeguards investors while ensuring the industry’s capacity to innovate and flourish.
She concluded the interview by sharing that clear cryptocurrency legislation is long overdue, “In my ideal scenario, we would have had it five years ago,” she finished.
Bitcoin (BTC) trades at $84,472 in the one-week chart. Source: BTCUSDT on TradingView
Featured Image from NBC News, Chart from TradingView.com
