SEC Commissioner Hester Pierce spoke at the CFC 2021 virtual blockchain conference on January 20, where she discussed the prospects for working with the new chairman appointed by Biden and touched upon the hope of providing a safe haven for the cryptocurrency region.
Crypto enthusiasts have affectionately called Pierce the “mom of crypto,” and he talked about the move to the SEC that saw former chairman Jay Clayton stepping down from office in December. Since then, future President Joe Biden has appointed Gary Gensler to this role.
Pierce said the Gensler agreement has not yet been quarantined, but the appointment of a new president will provide a fresh perspective on the matter:
“There have been quite a few changes over the past year, so I think the change of leadership is a good opportunity to look at change, including institutionalization. Obviously, we saw the bitcoin price rise slightly; we’ve seen a lot of activity in the DeFi room. “And I think all of this will provide a good foundation for the new boss to take a fresh look at issues across the board in the coding room.”
The SEC Commissioner touched on the eternal sword of Damocles that has hung over the cryptocurrency space since its inception: regulation. But the goal of regulation should be to bring clarity, Pearce says, adding that she hopes the new president will ensure that the United States continues to do its part in innovation.
“We really need to innovate and know how we can create a regulatory environment conducive to innovation, which I think in our room means clarity. And I think this is what the new president will face from day one, ”and Pierce.
In February 2020, Pierce told the audience at the Blockress blockchain conference in Illinois that she believed the SEC Safe Harbor rules should apply to cryptocurrency launches. At the moment, as Pierce explained at CFC 2021, new projects are under pressure to prove they are not a guarantee of safety from day one.
The Commissioner said: “If you cannot prove that the token works from day one, or that your network is decentralized, you may find yourself in a situation that is treated as an offer of shares under securities laws.”
But if Peirce’s proposal to use asylum status at cryptocurrency launch dominates the SEC, it would give projects an initial three-year window during which regulatory liability is gradually increased to foster innovation. Pierce SA:
“For the interim three years, you will comply with information orders that will provide token buyers with some information about you and the Premium Economy and Development team. He will also make sure that you use false judgments about our securities so that you do not lie about these things. ”
Pearce said her proposal received “a lot of positive reaction,” although not all observers necessarily agreed at the time, and some described Pearce as a lonely coin-friendly cut-scene in the world of blockchain skeptics.
But with the arrival of the new SEC chairman, Pierce has reason to be optimistic. She said:
“As many in this room know, Gary Gensler is already well versed in cryptocurrencies, as he studied at MIT and worked on many of these issues. And then he found out about the safe haven, this is a conversation, if he wants confirmation as president, I will definitely be with him. ”
Peirce was also asked about the recent announcement by the Financial Crimes Enforcement Network (FinCEN) that holders of cryptocurrencies with foreign accounts worth more than $ 10,000 will soon have to report their stake to the US Treasury. She inquired about the practical and ethical aspects of the FinCEN proposal and added:
“We really need to be careful when it comes to monitoring transactions of people who are not suspected of wrongdoing. Tracking sentences for their financial transactions is extremely disturbing because financial transactions are ultimately an expression of who you are as a person, that you do what you buy, what matters to you. ”
The very existence of a decentralized economy will prevent such attempts at financial control by FinCEN. As Pearce rightly points out, it can be difficult to identify a legal partner when that partner isn’t even human.
“You may not have a person’s physical address or a person’s name – because it might be an algorithm. When you have a smart contract, how do you identify a person or a physical address? ” I asked informally.