Hester Peirce, a commissioner at the US Securities and Exchange Commission, who is famous for the pro-crypto views, believes the SEC will have to issue crypto guidance. According to her, the growing interest in the space would force them to be more accommodative of crypto. However, she said it would not be easy.
The Details of the Interview
Peirce made the claim during a recent interview, that was posted on YouTube. She noted that while the SEC had been slow in providing guidance, there was growing interest from people inside and outside the crypto sector as well as the traditional financial sector. Consequently, they would be forced to deal with that over time.
Peirce claimed that the bureaucracy at the SEC was the reason why they had been slow in reacting to financial innovation. She said that it was a hindrance to change and it discouraged risk-taking. She noted that there were numerous layers of bureaucracy at the SEC. As a result, people are usually hesitant to make decisions. The reason for that is that when they do, the consequences come back on them if anything goes wrong. Consequently, it was easier to kick the can down the road.
However, it is not all negative. The commissioner pointed to the pro-crypto decisions by the CFTC and Office of the Comptroller of the Currency. Additionally, she noted that pro-crypto moves by other regulators globally were forcing the SEC to take action.
Peirce noted that there were a growing number of people at the SEC interested in crypto. She said that they wanted the SEC to be friendlier to financial innovation. Eventually, she believes that it will force the agency to shift its stance.
Congress and Smart Contracts
During the interview, Peirce also said that Congress needed to start considering smart contracts and decentralized finance. It would then issue the SEC with directives on how it wanted them to handle these issues.
On the issues of Bitcoin ETFs, Peirce said that she hoped the SEC would revisit the issue. However, she would not say whether the regulator would eventually approve of them. She claimed that the SEC seems to have made up standards just for BTC.
On the digital dollar, Peirce said there was a chance it could happen. However, she noted that most of the innovation was taking place outside the central bank digital currency space.