SEC Commissioner Hester Peirce States Proposed Amendments to Definition of "Exchange" Render Innovation "Kaput"
Hester Peirce, a commissioner of the U.S. Securities and Exchange Commission (SEC), has issued her opinion on the recent attempts of the institution to change the definition of “exchange” under the Exchange Act Rule. According to Peirce, the institution is now expanding its reach to solve “problems that do not exist,” stifling innovation in the process. SEC Commissioner Hester Peirce Issues Dissenting Opinion
U.S. SEC Commissioner Hester Peirce, also known in cryptocurrency circles as “crypto mom,” has written a letter blasting the recent decision of the Commission to amend the definition of “exchange” under the Exchange Act Rule. Peirce states that instead of bolstering innovation, this decision will render it “kaput,” bringing even more confusion to cryptocurrency circles in the U.S.
Peirce argued that, compared with the 90’s SEC that acted in a different way, today’s SEC uses the rulemaking process as a threat. She commented: Today’s Commission tells entrepreneurs trying to do new things in our markets to come in and register. When entrepreneurs find they cannot, the Commission dismisses the possibility of making practical adjustments to our registration framework to help entrepreneurs register, and instead rewards their good faith with an enforcement action.
Two U.S.-based crypto exchanges — Kraken, which already settled a case with the institution, and Coinbase, which has received a Wells notice — have complained about this course of action on the part of the SEC.
Peirce also addressed the lack of details when it comes to the applicability of these new standards to defi structures, commenting that the norm does not even consider if compliance for these platforms would be possible. SEC’s Decision
The cause of this dissent lies in the introduction of supplemental information to the definition of “exchange” in the Exchange Act Rule, directed to clarify which cryptocurrency structures fall under the umbrella of the agency.
While the amendment targets defi platforms and how can they be regulated under this new proposal, SEC Chair Gary Gensler clarified that many of these platforms are already covered by existing rules. He stated: Make no mistake: many crypto trading platforms already come under the current definition of an exchange and thus have an existing duty to comply with the securities laws. Investors in the crypto markets must receive the same time-tested protections that the securities laws provide in all other markets.
Commenters will have a period of 30 days to issue their ideas and doubts to the institution, which will be discussed and potentially applied to the amendment. Tags in this story exchange definition, Gary Gensler, hester peirce, Securities, US SEC
What do you think about Hester Peirce’s stance on the amendment of the “exchange” definition? Tell us in the comments section below Sergio Goschenko
Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved. Bittrex Receives Wells Notice From SEC for Alleged Investor-Protection Law Violations REGULATION | 10 hours ago G20 Finance Chiefs Agree Global Policy Responses to Crypto Are Required REGULATION | 2 days ago
Image Credits: Shutterstock, Pixabay, Wiki Commons, JHVEPhoto / Shutterstock.com Previous articleEconomist and Political Scientist Refute Claims of US Dollar’s Demise Despite Trend of De-Dollarization News Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItFollowing a Brief Fee Spike, Gas Prices to Move Ethereum Drop 76% in 12 Days
Transaction fees on the Ethereum network are dropping again after average fees saw a brief spike on April 5 jumping to $43 per transfer. 12 days later, average ether fees are close to dropping below $10 per transaction and median-sized ... read more.SEC Risks Violating Admin Procedure Act by Rejecting Spot Bitcoin ETFs, Says Grayscale Bitcoin ATM Operator Indicted in New York Allegedly Running Illegal Business Attracting Criminals Fed"s Bullard Wants to Raise Bank Rate to 3.5% by Year"s End, Hints at 75 Basis Point Rate Hike Microbt Reveals Latest Bitcoin Mining Rigs — Machines Produce up to 126 TH/s With Custom 5nm Chip Design