In a recent interview, Securities and Exchange Commission (SEC) Commissioner Hester Peirce discussed cryptocurrency regulation, special purpose acquisition companies (SPACs), and money market fund reform.
Commissioner Peirce acknowledged the challenges the cryptocurrency industry poses in terms of transparency. He highlighted the importance of balancing the need for transparency with the changing nature of blockchain technology.
In a conversation with Blockworks Macro, Peirce suggested that while the SEC has a long history as a disclosure regulator, it should also recognize the unique characteristics of blockchain technology. He mentioned that some aspects of the crypto space, such as on-chain transparency, are new and different and should be leveraged.
โI think it's a very active time in the SEC. The amount of regulation and the amount of really important regulation that's going on is pretty staggering. If all are adopted, we will fundamentally change the way our markets work. So it is an active time; โThere is a lot to learn and work on.โ
He explained that tokens are only part of the picture in the world of digital assets and do not automatically count as securities. The United States has a broad definition of what is considered a security, which includes traditional assets like stocks and bonds, but also encompasses things like investment contracts.
When it comes to applying this test to cryptocurrencies, it can be complicated. Sometimes, it's not just the asset itself that matters, but also the promises it carries, whether clear or implicit. It is essential that regulators and industry players are accurate when assessing whether something qualifies as a security.
"I think we can all sit back and think about cryptocurrencies and identify some things that labeled themselves as cryptocurrencies and then really went to town and scammed people, and at the SEC one of the things we do as a commission is review these compliance measures. cases,โ he added.
