Hester Peirce, an SEC commissioner who strongly supports cryptocurrency investments, criticized the organization’s new regulatory priorities in a public statement on Wednesday.
A top Securities and Trade Commission (SEC) official has reprimanded the regulator for establishing guidelines that could harm the economy and undoubtedly damage public trust in the authorities.
A new public statement from Commissioner Hester Peirce alleges that the SEC’s actions not only conflict with its role but also pose a longer-term threat to the health of the financial markets.
The Regulatory Flexibility Agenda for the Securities and Trade Fee put forth by Chair Gensler has faulty goals and a wrong approach to achieving them. If the strategy is implemented, there is a risk of triggering the regulation of rip currents.
In addition, there are unfavorable conditions in the financial sector due to the apparent pace and complexity of the rulemakings towards this agenda.
Peirce on the State of the Global Economy
In response to concerns regarding SEC recommendations relating to cryptocurrencies, the Commissioner states:
“Even though the Agenda includes rules that may control crypto operating systems or protocols through an unmarked backdoor, it doesn’t appear to include any rules specifically intended to address the key regulatory issues that have emerged about these things.”
Peirce is apprehensive that hastening the policy-making process might prevent market players from contributing their opinions and perspectives on proposed policies.
Channeling the Negative Impact
Commissioner Peirce ends by highlighting the negative consequences of hastily establishing insurance policies.
“When the Commission rushes to draught and executes a plethora of rules, many of which fall outside the scope of our long-standing authority, it creates situations that could destabilize the markets. By refocusing our agenda to address issues essential to the running of the markets and the protection of public health, as well as by slowing down the pace so that we and the public can assess what we’re doing, we can avoid producing regulatory rip currents.”
Peirce has already voiced public criticism of the SEC’s insurance practices. Earlier this week, he took issue with the organization’s persistent opposition to permitting a spot-priced exchange-traded fund (ETF) for Bitcoin (BTC).