{"id":17005,"date":"2023-01-28T03:36:29","date_gmt":"2023-01-28T03:36:29","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/sec-commissioner-calls-for-consistent-legal-framework-for-all-asset-classes-including-crypto-regulation-bitcoin-news\/"},"modified":"2023-01-28T03:36:29","modified_gmt":"2023-01-28T03:36:29","slug":"sec-commissioner-calls-for-consistent-legal-framework-for-all-asset-classes-including-crypto-regulation-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/sec-commissioner-calls-for-consistent-legal-framework-for-all-asset-classes-including-crypto-regulation-bitcoin-news\/","title":{"rendered":"SEC Commissioner Calls for ‘Consistent Legal Framework’ for All Asset Classes, Including Crypto \u2013 Regulation Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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A commissioner with the U.S. Securities and Exchange Commission (SEC) has called for \u201ca coherent and consistent legal framework that works across all asset classes,\u201d including crypto assets. She warned that the SEC\u2019s current enforcement-centric approach would take 400 years to go through all the crypto tokens that are allegedly securities.<\/strong><\/p>\n

SEC\u2019s Commissioner on Crypto Regulation<\/h2>\n

A commissioner with the U.S. Securities and Exchange Commission (SEC), Hester Peirce, talked about crypto regulation in her speech at the \u201cDigital Assets at Duke\u201d conference on Jan. 20.<\/p>\n

Noting that the securities regulator has \u201cpursued registration violations in a seemingly random fashion, often years after the original offering,\u201d the commissioner stressed:<\/p>\n

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We must develop a coherent and consistent legal framework that works across all asset classes. Our imprecise application of the law has created arbitrary and destructive results for crypto projects and purchasers.<\/p>\n<\/blockquote>\n

\u201cWhen we insist on applying the securities laws in this manner, secondary purchasers of the token often are left holding a bag of tokens that they cannot trade or use because the SEC requires special handling consistent with the securities laws,\u201d Peirce warned. \u201cMany of these requirements are enforced under a strict liability standard, so clarity is essential.\u201d<\/p>\n

The commissioner continued, \u201cWhy not set forth a coherent legal framework in a rule?\u201d elaborating:<\/p>\n

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After all, if we continued with our regulation-by-enforcement approach at our current pace, we would approach 400 years before we got through the tokens that are allegedly securities.<\/p>\n<\/blockquote>\n

\u201cBy contrast, an SEC rule would have universal\u2014albeit not retroactive\u2014coverage as soon as it took effect,\u201d she noted.<\/p>\n

Commissioner Peirce further explained: \u201cA rational framework should facilitate the compliance of good faith crypto actors with our securities laws, which would free the SEC to focus more of its resources on the bad faith actors.\u201d<\/p>\n

However, she cautioned:<\/p>\n

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Crypto regulation is not easy to do well. If crypto institutions are treated like regular depository institutions, requiring heavy layers of capital and lots of legal staffing, crypto innovation is likely to dwindle.<\/p>\n<\/blockquote>\n

This was not the first time Commissioner Peirce has raised concerns about the way the SEC has been regulating the crypto sector. She has repeatedly criticized the securities watchdog for taking an enforcement-centric approach<\/a> to regulating the crypto space. She also believes that the regulator should have already approved a spot bitcoin exchange-traded fund<\/a> (ETF). In May last year, she warned that the SEC has dropped the ball<\/a> on crypto oversight, stating: \u201cWe\u2019re not allowing innovation to develop and experimentation to happen in a healthy way, and there are long-term consequences of that failure.\u201d<\/p>\n

Commissioner Peirce is not the only one who is concerned about the SEC\u2019s enforcement-centric approach. U.S. Congressman Tom Emmer (R-MN), for example, has repeatedly criticized<\/a> SEC Chairman Gary Gensler. \u201cUnder Chair Gensler, the SEC has become a power-hungry regulator,\u201d the lawmaker said in July last year.<\/p>\n

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Crypto regulation<\/a>, crypto regulatory framework<\/a>, Cryptocurrency regulation<\/a>, enforcement-centric crypto<\/a>, hester peirce<\/a>, Hester Peirce crypto<\/a>, Hester Peirce cryptocurrency<\/a>, SEC<\/a>, SEC Commissioner<\/a>, SEC Commissioner crypto<\/a>, sec crypto regulation<\/a><\/div>\n<\/div>\n

Do you agree with SEC Commissioner Hester Peirce? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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