U.S. Securities and Exchange Commission (SEC) Commissioner Hester Pierce, commonly known as “Cryptom Mom”, expressed her opinion that crypto laws in the United States need to be more careful and restrained. In a recent discussion at Australian Blockchain Week, she spoke out against regulating all aspects of the technology solely from a financial standpoint, highlighting that cryptocurrencies have various uses beyond finance, such as to facilitate decentralized interactions.
Pierce stressed the importance of creating a regulatory framework that allows experimentation and innovation, rather than imposing rigid rules that can stifle the development of new applications for cryptography and blockchain technologies. It argued for a balance between ensuring sufficient clarity in the legal framework and avoiding being too rigid to accommodate emerging use cases.
The Commissioner recalled situations where regulators remain inactive for a long period and then suddenly initiate a series of enforcement actions. She stressed the need for proactive and adaptive regulation that keeps pace with industry advances.
SEC Approach to Cryptocurrency
Pierce also expressed confidence that the SEC can improve its approach to cryptocurrencies and blockchain technology. She highlighted the opportunity for the SEC to reconsider its perspective on innovation and acknowledged that the current position of regulators may not be acceptable. Pierce advocates a more open and progressive approach that promotes innovation and eliminates potential risks and challenges.
In addition, Hester Pierce highlighted the need for a balanced and restrained approach to cryptocurrency regulation in the United States. She called for a regulatory framework that accommodates use cases beyond finance, encourages innovation, and provides clarity without being overly rigid. Pierce also expressed confidence that the SEC can improve its approach to cryptocurrencies and highlighted the industry’s responsibility for self-regulation while recognizing the role of government regulators in certain areas.