A commissioner of the US Securities and Exchange Commission (SEC) said that the official regulation of cryptocurrencies could hinder the development of the technology. Hester Peirce's remarks come at a time when the US SEC is accused of acting in contradiction, and there is hope for those who urge governments to step back in order to prevent over-regulation
Read Also: Analysis: Understand the SEC's Attitude to Crypto
The technology self-appropriating
Hester Peirce, a US Securities and Exchange Commissioner, spoke at the University of Missouri School of Law on February 8 when she hinted that government regulation might actually get the crypto industry in trouble. The lawyer, who was called "Crypto Mom" for her generally positive comments on cryptocurrency, said it might be a better idea for regulators to step back and mature blockchain projects, and over-hasty regulations could harm the industry :
We may be able to draw clearer lines when we see more blockchain projects. A delay in drawing clear lines can actually bring more freedom to the technology.
Diverse perspectives needed
Peirce's comments come at a time when the SEC's views on cryptocurrencies were not entirely clear. Last year, the SEC rightly prosecuted initial coin deals and other fraudsters who operate cryptos. However, as Peirce noted, this does not mean that supervisors and government agencies should be automatically skeptical about anything that should come from the cryptocurrency sector.
As Angela Walch, a professor of law at St. Mary's University's Law School, and research associate at the Center for Blockchain Technologies at University College London said, it's all too often important for regulators to have a "diverse perspective" You can focus too much on the protection of the financial system and are independent of innovation and the benefits that cryptocurrencies could bring.
What do you think about the comments by Hester Peirce and the SEC's attitude to crypto? Let us know in the comments below.
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Post-SEC Commissioner proposes excessive crypto regulation against growth in Bitcoin News.