SEC Commissioner says New Bitcoin Regulator Not Best Strategy

Hester Peirce said she doesn’t want a new exclusive regulator for crypto developments in the US. She also spoke her mind on Bitcoin Spot ETF’s approval.

Hester Peirce, the commissioner of the US Securities and Exchange Commission (SEC), has said that she doesn’t think having an exclusive regulator to oversee crypto developments in the United States is the best strategy. She underscored the fact that over the years the SEC has adapted to a wide range of new technologies and therefore it shouldn't be different with the case of cryptocurrencies also. 

In an interview with CoinDesk TV, Peirce went on to say:

“I have a couple of problems with it… Typically in Washington, when you build another regulator, all you get is all the existing regulators plus one.”

The bigger players such as hedge funds, corporates, insurance companies, and institutional investors started to jump on the Bitcoin (BTC) bandwagon in 2021. As these larger investors make sizeable investments, they usually ask for a higher level of clarity regarding cryptocurrency regulation. This is mainly because they want to minimize the risks associated with the uncertain environment of cryptos. 

In early December 2021, a group of top executives of leading cryptocurrency-related companies joined a discussion of the U.S. House of Representatives. They discussed the concepts related to the decentralized network and at the same time the regulatory aspects within which the new technologies can come. In that discussion, many prominent executives including the CEO of Coinbase stressed the need for new legislation for new technologies including cryptocurrencies. 

After the hearing, Senator Cynthia Lummis had said that she is drafting a new bill for regulating cryptocurrencies, right from categorization to taxation. Reports say that this new draft bill will include proposals for creating a new regulatory body exclusively for Bitcoin and other altcoins. 

With the increasing demand for clarity on cryptocurrency regulations and spot Bitcoin ETF in addition to derivatives based bitcoin ETFs (already approved by the SEC), the SEC Commissioner Hester Peirce said:

“I’m just hopeful that we set our minds to work at building something that makes sense in terms of regulatory clarity, instead of always just falling back on enforcement.”

To come clean on the question of approving spot BTC ETFs, Peirce said:

“Chair Gensler has said he wants to see platforms registering with us… So maybe that’s what it takes for a spot product to get approved.”