The U.S. Securities and Exchange Commission (SEC) needs to work with cryptocurrency companies to create a ‘prudent framework’ for regulating the industry. This view was expressed by Commissioner Hester Peirce to The Wall Street Journal.
She proposed the Commission develop a system for engaging with players in the decentralized sector, taking into account its inevitable growth. She said that the sooner regulators recognise the importance of cryptocurrency, the more the country’s financial markets stand to benefit.
“I think we can safely assume that the crypto industry will grow in size. And what we can do now to invest in creating a sensible framework, I believe, will pay off in the future,” Peirce said.
The SEC commissioner noted that the regulator’s conservative and cautious approach is detrimental to startups and small businesses. Small innovative ventures face a laborious and costly process of having their products and services approved, she added.
“Regulators tend to be very conservative for the reason: if we don’t approve something, we won’t be blamed; if we approve something and something goes wrong, we will be blamed. But this hesitation is really costly for small companies,” Peirce emphasised.
Earlier, the commissioner urged DeFi-projects to approach the SEC themselves to avoid violating securities laws. stated that at the federal level blockchain startups would have to ‘spend a ton of money, time and endure misery’, and in the end not achieving the regulator’s desired result.
Earlier, the crypto-friendly Peirce urged the swift adoption of clear rules for the industry, but warned against excessive regulation.