JAKARTA - Commissioner of the United States Securities and Exchange Commission (SEC), Hester Peirce, called on the crypto industry to try to solve the problems it faces without having to wait for intervention from regulators. Pice expressed his views in a speech at Duke University Digital Asset Conference on January 20.
According to Peirce, "most of the crypto world is burned" in a fire lit by bad actors. He considers 2022 a valuable lesson for the crypto industry to address the problems it faces.
"The fire that was turned on by bad and careless actors in the crypto world last year offers lessons for the new year... People in the crypto industry and we who organize it can learn something from the terrible, terrible, not good, and very bad 2022," said Hester audio.
However, he also stated that blockchain technology takes time to develop and can sometimes look "dangerous" to people outside the industry.
Peirce puts the responsibility on developers to "improve" the problems that arise in the crypto industry, not waiting for regulatory guidance. He stressed that people who believe in the future of crypto must take the initiative to address problems that arise without waiting for intervention from regulators.
"People who believe in the future of crypto are they shouldn't wait for regulators to fix problems that arise to the surface by 2022," he added.
The United States Securities and Exchange Commission (SEC) Commissioner, Hester Peirce, stated that progress is being made in the process of crypto regulation at the SEC. In a speech at Duke University's Digital Asset Conference on January 20, he explained that blockchain-powered companies currently take longer to navigate the registration process at the SEC, but are not unilaterally rejected.
Currently, the SEC is adopting a notification approach to projects, where law enforcement will not be followed up if certain conditions are met. Pierce expressed support for this notification and comment process, but added that it might be better to be flexible in implementing existing disclosure requirements.
Peirce also stated that the SEC's current system needs improvements to help make regulatory processes smoother for those wishing to work in accordance with the law. He said that the SEC needed to carry out better, more precise, and more transparent legal analysis, so as not to produce regulations known as "regulatory by anxiety".
Peirce also stated that an nuanced approach to crypto regulation may be needed, which recognizes various sectors in blockchain space. For example, SEC regulatory guidelines are currently designed for centralized entities, making it unlikely to be used for decentralized projects.
In a surprising statement, the United States Securities and Exchange Commission (SEC) Commissioner, Hester Peirce, stated that some of the current DeFi (decentralized finance) tools allow the financial world to offer self-organization. He stated that DeFi deserves special attention because of its unique nature that can replace the possible functions of regulation.
"DeFi deserves special consideration because of its unique nature, some of which replace functions that may be carried out by regulation,"▁gantiup said.
Peirce's understanding of the nuances of the crypto industry was evident in his speech. He also rejected recommendations from securities regulatory agencies that the DeFi front-end portal should be a regulatory target rather than the underlying code base, as it would undermine the decentralization properties of the industry.
"Efforts to force DeFi into the framework of traditional regulations will most likely result in a system where several large companies operate," he added.
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