JAKARTA Hester Peirce, Commissioner of Securities and Exchange Commission (SEC), has made a strong condemnation of the agency's decision to attack the Kraken cryptocurrency exchange. This decision forced the company to remove its staking program and pay a fine of 30 million US dollars (equivalent to Rp454 billion).
In an official letter of dissent, Peirce criticized the SEC's actions for having a different view than his. Peirce considers that repeated attempts by the SEC to regulate the industry through law enforcement are bad for the average American investor. He also considers that using law enforcement measures to provide information about the law in an industry that is developing is not an efficient or fair way.
Peirce considered that the SEC's actions to accuse companies in developing industries of making mistakes, launching legal action, and imposing settlements instead of offering clear guidelines were externalistic and lazy actions.
"This is the day the SEC closes the Kraken staking program and considers it a win for investors. I disagree and therefore I disagree," Peirce said in the official letter. "Instead of thinking through staking programs and issuing guidelines, we again chose to speak through law enforcement measures, with the aim of 'explaining to the market that stake-as-a-service providers must register and provide complete, fair and honest disclosure and investor protection."
This is an ongoing debate between Peirce and the SEC over how the crypto industry should be accepted and implemented in the world of finance. Peirce hopes that in the near future there will be a solution that can be accepted by all parties to regulate the crypto industry in an efficient and fair way for all stakeholders.
"The most concerning thing is that our solution to registration violations is to completely close programs that have served the community well. This program will no longer be available in the United States, and Kraken is prohibited from offering staking services in the United States, either registered or not. The regulator is externalistic and lazy to choose solutions like those in this settlement: don't start the public process to develop an applicable registration process that provides valuable information to investors, just close," said Peirce.
Furthermore, he explained that the SEC's actions indicated that the regulator was openly hostile to the crypto industry at large. Peirce questioned the clarity of the SEC-propelled crypto-related regulations as reported by DailyHodl.
"More transparency around crypto-staking programs like Kraken may be a good thing. However, do we need a uniform regulatory solution and whether such regulatory solutions are best provided by regulators who are hostile to crypto, in the form of law enforcement action, it is still unclear," he added.
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