Hester Peirce finds lack of clarity in the SEC chair’s plan on crypto

Hester Peirce, a US Securities and Exchange Commission (SEC) commissioner nicknamed “Crypto Mom” by many in the industry, is putting pressure against the regulatory body’s agenda for not containing clarity and explanation on digital assets.

SEC Commissioner Elad Roisman sang along with Peirce and said they were “disappointed” that chairperson Gary Gensler’s regulatory agenda failed to include items intended to help companies raise capital, improve investor protection, undo recent commission rules, and clarify crypto in a joint statement released Monday. According to the two authorities, Gensler’s ambiguous attitude on digital assets could cause issues for companies trying to enter the market.

Gensler earlier this year accepted that SEC has no power to ban crypto in the nation.

“Rather than tackling the difficult task of formulating rules to allow investors and regulated entities to interact with digital assets, including digital asset securities,” Peirce and Roisman said, “the Agenda’s quietness on crypto signals that the market can expect continued questions about the application of our securities laws to this area of growing investor interest.” “Such silence empowers fraudsters while hindering law-abiding participants.”

The latest regulatory agenda shows that the SEC will be busy in the upcoming months, but it won't be working on the right things: https://t.co/QPQGKN91gL

— Hester Peirce (@HesterPeirce) December 13, 2021

The proposed regulatory framework also defers amendments pertaining to audit trails of details around trades — presumably including crypto — and the people behind the transactions, according to the pair. Deferring action on these precautions, according to Peirce and Roisman, makes investors’ data insecure.

Is SEC delaying the ETF on purpose?

Since April, Gensler, who has served as SEC chair, has made a number of public remarks urging crypto exchanges to come in and talk about any concerns they may have about token projects that could qualify as securities. Gensler wanted to implement crypto-related policy changes in the areas of token offerings, decentralized finance, stablecoins, custody, exchange-traded funds, and lending platforms in August.

Many have accused the SEC, as a primary regulator for financial goods in the United States, of delaying the launch of exchange-traded funds (ETFs) tied to cryptocurrencies. Although the government recently approved ETFs from investment managers ProShares and Valkyrie that have exposure to Bitcoin (BTC) futures, it has yet to approve many other crypto ETFs.

Recently, the Bitcoin price slipped down after SEC rejected VanEck’s spot Bitcoin ETF and we can expect an extended bull run due to the delays by the regulator.