- Exchange platforms must register themselves under SEC – Gensler statement.
- Registration must be implied on mal-activities and boost the innovations.
SEC commissioner Hester Pierce expressed her discontent with the new crypto regulations imposed by U.S. Securities and Exchange Commission (SEC). Gary Gensler, SEC Chairperson made a statement last week after the dramatic fall of Luna and its stablecoin that more cryptocurrencies are expected to fall below and investors will have to face more loss.
“I think a lot of these tokens will fail … I fear that in crypto… there’s going to be a lot of people hurt, and that will undermine some of the confidence in markets and trust in markets writ large.”
The concern about crypto assets has also increased post the event and U.S. Treasury Secretary Janet Yellen mentioned that regulation must be increased on stablecoins. The number of cryptocurrencies under his jurisdiction is more than 19,500 cryptocurrencies.
Gensler also instructed the trading platforms to register under SEC, if they fail to do so they have to face “enforcement Action” and informed that most of the asset managers under the SEC have very little knowledge about the subject.
In an interview during the DC Blockchain Summit 2022, Hester Pierce revealed her opinions about the regulation, she strongly believes that SEC has made an error. The restrictions are only drawing boundaries to innovations and inventions.
“We can go after fraud and we can play a more positive role on the innovation side, but we have to get to it, we’ve got to get working … I haven’t seen us willing to do that work so far.”
Pierce being the supporter of the cryptomarket is generally called a “crypto-mom”, she advises that SEC must take opinions from the people who exhibit interest in crypto rather than forcing traditional finance regulations into the blockchain market.