Crypto Mom Warns that SEC Agenda Will Lead to ‘Fatal’ Market Conditions

Crypto Mom Warns that SEC Agenda Will Lead to ‘Fatal’ Market Conditions

U.S. Securities and Exchange Commission (SEC) official, Hester Peirce, has voiced harsh criticism on the regulator’s policies that could hurt the economy while making the institution lose all its credibility.

In a recent public statement, Commissioner Hester Peirce, also known as ‘Crypto Mom’ for her pro crypto position, said that the SEC risks hurting the capital markets in the long run as it is currently operating off-track. She said:

“Chair Gensler’s Regulatory Flexibility Agenda for the Securities and Exchange Commission sets forth flawed goals and a flawed method for achieving them.

The agenda, if enacted, risks setting off the regulatory version of a rip current – fast-moving currents flowing away from shore that can be fatal to swimmers.

The pace and character of the rulemakings on this agenda make for dangerous conditions in our capital markets.”

Peirce points to flaws in the SEC proposals on cryptocurrencies and stated:

“Although the Agenda includes rules that might regulate crypto protocols or platforms through an unmarked backdoor, it does not appear to include any rules primarily intended to grapple with the main regulatory questions that have arisen around these assets.”

Peirce is also concerned that accelerating the policy-making process could keep market participants from submitting their opinions and responses to proposed rules.

In conclusion, ‘Crypto Mom’ cautions for hasty decisions and advises the regulator to really focus on what is at hand:

“When the Commission attempts rapidly to write and implement myriad rules, many of which are outside our longstanding mandate, it sets up conditions that could roil the markets.

We can avoid creating regulatory rip currents by recalibrating our agenda to focus on issues core to the protection of investors and operation of our markets and by slowing down the pace to ensure that we and the public can think about what we are doing.”

The commissioner has publicly criticized the SEC in the past, noting that SEC proposals could give officials newfound authority to attack cryptocurrency platforms, including decentralized finance (DeFi) protocols.

Earlier this week, Peirce told Forbes that despite hard times in the industry she opposes crypto company bailouts and believes it leads to a more sustainable industry when “these things play out”.

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Source: igaming