At the ETHDenver conference on Feb. 29, United States Securities and Exchange Commission (SEC) Commissioner Hester Peirce, also known as “Crypto Mom,” emphasized the importance of decentralization in the U.S. financial system and advocated for a softer approach to crypto regulation and enforcement.
Peirce highlighted that decentralization can bring resilience and strength to the financial system, contrasting with the concentrated risks associated with centralization. She expressed concerns about points of centralization and stressed the need for more resilience and strength in the financial system.
Peirce expressed concern about proposed legislation that aims to treat decentralized technologies as financial institutions, citing confusion over registration requirements. She noted the challenges posed by the broker/dealer rule, which could impact decentralized finance (DeFi), decentralized exchanges, and developers.
Peirce acknowledged the difficulties faced by the SEC in regulating decentralized systems, particularly in cases where interactions occur directly with code rather than with traditional entities. She emphasized the need for the SEC to adapt to the concept of decentralization.
Peirce stated that it might not be the SEC’s role to “even get comfortable with crypto,” suggesting that the agency should focus on providing clear rules for the crypto space to foster growth and decentralization without the threat of litigation.
Peirce discussed various crypto-related topics, including the SEC’s future after the U.S. presidential election, spot Bitcoin exchange-traded funds, central bank digital currencies, and the potential implications for state financial surveillance.
Overall, Peirce advocated for a balanced approach to crypto regulation that promotes innovation while addressing regulatory concerns.
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