On Friday, the 8th of February, one commissioner of the United States SEC or Securities and Exchange Commission said that the delay in establishing cryptocurrency regulation may permit more freedom for the industry to move on its own.
The ‘Crypto Mom’ of SEC
Heister Peirce, the the commissioner that is widely known as the Crypto Mom in the community for her dissent against the decision of SEC to reject Bitcoin exchange-traded fund or ETF, which was proposed by the Winklevoss brothers, made the comments in a speech on regulation issues at the University of Missouri, School of Law.
Discussing the current delays in delivering a more transparent legal framework for crypto, the commissioner said that ambiguity is not that bad. She further explained that they may have the ability to draw clearer lines once they see more blockchain projects mature. The delay in bringing clear lines can allow more freedom for the technology to come into its own too.
The commissioner has also noted that the regulating process of a new industry might be quite lengthy, and she further stressed that the SEC has to act appropriately to enable the industry to evolve without the compromising of the laws from right now.
Pierce mentioned that if they act appropriately, they may enable innovation on the new frontier to proceed without compromising the objectives of their securities laws – facilitating capital formation, protecting investors, and even ensuring fair, as well as orderly and efficient markets.
Peirce: Crypto projects are unable to make progress
However, on the other hand, overregulation sometimes happens. She also stated that enforcement actions are also not the preferred method for setting expectations for crypto investors.
Furthermore, she added that some cryptocurrency projects are not able to make progress within the existing framework, as securities laws make them unworkable.
Pierce strongly believes that the SEC is sometimes too hesitant when it comes to dealing with cryptocurrency projects and that investors willing to raise money might also be deluded by excessive caution.
She stated that they rightfully fault investors for jumping blindly at anything which is labeled crypto, but sometimes, they seem to be equally impulsive when it comes to running away from anything labeled crypto. They owe it to investors to be careful; however, they also owe it to them not to define their investment universe with their preferences.
Peirce: BTC ETF may happen tomorrow or in 20 years
Peirce concluded that the U.S. Congress might also resolve the ambiguity which is related to the crypto by requiring that at least some digital assets should be treated as a separate asset class.
As it has been reported previously, such an initiative was already introduced to the House of Representatives later in December of 2018. In the law, two U.S. legislators seek to eliminate cryptocurrencies from being seen as securities by altering the Securities Act of 1933 and the Securities Act of 1934.
Earlier in 2019, she admitted trying to convince her colleagues to have a bit of an open mind regarding cryptocurrency adoption, but she also warned that it might even take a long time. She has also urged the investors not to hold their breath waiting for a BTC ETF, as according to her, it might occur tomorrow or in 20 years period.