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As numerous agencies explore stronger policy demands, crypto-friendly SEC Commissioner Hester Peirce has urged for nuanced cryptocurrency rules.
The US Securities and Exchange Commission’s Hester Peirce has encouraged regulators to take a step back from seeking to overregulate the crypto market.
Speaking to Financial Times, Peirce, affectionately dubbed “Crypto Mom” due to her positive stance on cryptocurrencies, argued against the need for strict regulatory policies.
According to Peirce, regulators by nature often have a knee-jerk reaction to emerging market spaces, often at the expense of innovation.
The SEC commissioner warned that pursuing stricter regulatory policies eliminates the ability of market participants to carry out peer-to-peer transactions. Rather than emphasizing government regulations, Peirce advocates for industry-led regulatory activities.
Indeed, the commissioner has long advocated for crypto self-regulation. In a discussion with current SEC chairman Gary Gensler in March 2019, Peirce argued the case for crypto self-regulatory groups.
Peirce isn’t the only US regulator that supports crypto self-regulation. Commodity and Futures Trading Commission Commissioner Brian Quintenz, as previously reported by Cointelegraph, asked on industry stakeholders to build a self-regulatory framework in February 2019.
Japan continues to be an example of fairly effective crypto self-regulation, with the country’s cryptocurrency SRO interacting with government authorities on critical legal and policy issues.
Peirce’s recent plea for nuanced crypto policy comes amid signs of a growing push in the United States for stronger cryptocurrency laws. Treasury Secretary Janet Yellen and SEC Chairman Gary Gensler have both said that they will keep a careful eye on the market.
The Internal Revenue Service requested legislative power to regulate cryptocurrency on Tuesday. In May, the Treasury Department unveiled a new proposal to require crypto service providers to record transactions worth more than $10,000.
Meanwhile, on Wednesday, the Senate Banking Committee will meet to explore problems relating a hypothetical Federal Reserve-issued digital money. According to reports, the conversation may also include the larger crypto industry.