Ahead of the impending changes in the Securities and Exchange Commission (SEC), crypto-friendly commissioner Hester Peirce openly asked the upcoming US government to drop the ongoing crackdown on the industry and work on better and clearer policies for the sector.
Commissioner Peirce Slams SEC’s Regulatory Approach
On Monday, SEC commissioner Hester Peirce joined Fox Business to discuss the upcoming changes in the US regulatory landscape and propose a path to change the agency’s approach with the new crypto-friendly government.
During the interview, Peirce revealed that working at the regulatory agency has been “extremely frustrating” over the last few years as the SEC has wasted many opportunities to provide guidance and clarity.
The commissioner noted that, instead, “our approach has been almost entirely driven by bringing lawsuit after lawsuit, which is a really expensive way to regulate, and it’s also not a particularly effective way.”
Peirce and many industry figures have previously criticized the “regulation by enforcement” approach taken by the SEC, with many pointing out the ineffectiveness of this path.
Moreover, she considers that it’s time to work together on a “regulatory regime that makes sense” as there “has been an interest in having clear crypto rule for years.”
The commissioner added that it’s best to create a better framework and let the market decide whether they want crypto, just some assets or nothing, instead of trying to decide for it.
The End Of ‘Operation Chokepoint 2.0’?
Commissioner Peirce also commented on the leadership change at the regulatory agency, explaining that Gary Gensler’s departure was expected after Donald Trump’s victory. The outgoing SEC chairman announced last month he would step down from the agency on January 20, 2025, the day of Trump’s inauguration.
The re-elected president recently named Paul Atkins as his pick for the new SEC leader, fueling optimism about the new era for the crypto industry. Peirce weighed in on the upcoming SEC chairman, explaining that Atkins will likely find the right balance to tackle the regulatory overreach problem:
I worked for Paul Atkins, so I know a lot about how he approaches problems, and he is very good at thinking about how to use government efficiently and effectively to solve problems but not to step in the place of the market, where the market can do its own thing. So, he’s got the balance right, and I think that’s why he will be very good at tackling this problem.
The commissioner also proposed a three-step plan to move forward with a more welcoming regulatory approach. She stated that they must stop the chokepoint aspect of government regulation,” alluding to what Marc Andreessen, co-founder of venture capital firm Andreessen Horowitz, called “Operation Chokepoint 2.0.”
As reported by Bitcoinist, Andreessen accused the Biden-Harris administration of using financial exclusion as a weapon against more than 30 founders, tackling legal businesses related to the digital assets industry.
To Peirce, the government must “stop this approach of trying to prevent crypto from getting access to the services that it needs — custody, for example — to move forward.”
Step two requires clarity on the SEC’s responsibilities, detailing what’s outside of the agency’s ambit and “which people don’t have to think about the SEC’s regulatory framework.”
Lastly, the commissioner suggested that the agency work with crypto industry entities to determine what changes should be made to the existing rules and what’s missing. She added that this should be a group exercise that “needs to be done in public so that everyone can participate in it” and get to “a good place” quickly.
Bitcoin (BTC) is trading at $97,400 in the one-week chart. Source: BTCUSDT on TradingView
