SEC Commissioner Challenges Agency’s Approach to Crypto Regulation
Key points:
- SEC Commissioner Hester Peirce publicly criticizes the agency’s recent actions regarding cryptocurrency regulation, particularly in the LBRY case.
- Ripple Labs General Counsel Stuart Alderoty and XRP community members openly support Peirce’s stance.
- Peirce’s critics are calling for a revision of crypto regulation by the SEC.
The Securities and Exchange Commission (SEC) is facing criticism from within its own ranks. Hester Peirce, one of the five SEC commissioners, has publicly criticized the agency’s approach to cryptocurrencies and blockchain.
This critique comes after LBRY, a blockchain-based company, had to cease operations following a lawsuit by the SEC. LBRY was found to be in violation of the Securities Act of 1933’s Section 5 and had to shut down due to regulatory and financial pressures.
Peirce expressed dissatisfaction with the way the SEC handled the case, calling its approach “misguided.”
A Well-Received Statement by the XRP Community
Stuart Alderoty, the General Counsel of Ripple Labs, along with members of the XRP community, have expressed support for Peirce’s position. Alderoty suggests that when injustices continue to occur in non-fraudulent cases, it may be necessary to question standard protocols and speak out more openly.
The commissioner is not alone in questioning the SEC’s policy. Major players in the industry, such as Coinbase, have also criticized the lack of clarity in the enforcement of securities laws.
Peirce suggests that the current approach could have detrimental consequences not only for innovative companies, but also for investors and the market as a whole. The debate is far from over, and it will be interesting to see if these internal critiques will lead to regulatory reform.
