SEC Commissioner Hester Peirce urges policymakers to consider the benefits of cryptocurrencies

Officials are fixated on illicit use of cryptocurrencies and fail to notice their benefits, said SEC Commissioner Hester Peirce.

During a talk at a virtual conference organized by the British Blockchain Association, the SEC representative urged authorities to pause and consider the other side of digital assets.

“Thanks to the absence of intermediaries, as well as the ease of storage, transfer and access, cryptocurrencies can become an important tool for people living under threat of violence from family members, locals and oppressive authorities,” the commissioner said.

According to Peirce, authorities underestimate the “protective function” of digital assets, and an overly conservative stance could harm investors.

“I hope that this year we will see a turning point for the United States, which in turn could spur other countries to adopt a more sensible approach to cryptocurrency regulation,” she said.

The commissioner also criticised the SEC’s “constantly evolving stance” on a Bitcoin-based exchange-traded product (ETP). In her view, regulators should provide regulatory clarity so that participants in traditional financial markets can interact with cryptocurrencies with confidence.

In February 2021, Peirce noted that US capital markets are ready for a bitcoin ETF.

What is a crypto ETF?

During her remarks, the SEC representative also noted rising institutional investor interest in digital gold. Peirce did not rule out that this could push the commission toward addressing regulatory issues.

Earlier, Peirce advocated for the creation of progressive rules for the cryptocurrency industry. She also urged U.S. authorities to refrain from onerous measures and not to constrain the sector’s potential.

In February 2021, the SEC Commissioner said there was a need for swifter introduction of clear regulatory requirements in the wake of Bitcoin being embraced by major companies.

Earlier in March, U.S. Representative Warren Davidson for the third time introduced to Congress a bill to exclude cryptocurrencies from securities laws.

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