Hester Peirce urges DeFi projects to engage with the SEC

Developing uniform rules for the DeFi space is difficult due to the diversity of ecosystems, so it is better for specific projects to engage with the SEC to avoid breaching securities laws. This view was voiced by Commissioner Hester Peirce in an interview with Forbes.

In her words, the regulator, on a case-by-case basis and on the facts and circumstances, will be able to determine whether tokens are sold under an investment contract and whether they are securities or not.

Ms. Peirce herself argues that there is little point applying these rules to decentralized projects.

The disclosure law was designed to prevent manipulation of information in the promotion of shares by company owners, she noted. In genuine decentralisation there is no one who would hold a monopoly on information, the SEC commissioner noted.

She repeated her opinion that the regulator should be ready to approve Bitcoin-based exchange-traded products.

“We have just seen Canada approved one or more ETFs. I think this could have a real effect,” added she.

Earlier Peirce said that the SEC should be less lenient in regulating the DeFi sector. The regulator will face many difficult questions from its participants, she added later.