The SEC Takes Proactive Approach to Crypto Regulation
In a recent interview on Bloomberg TV, Commissioner Hester Peirce of the SEC made it clear that the agency is not waiting for Congress to pass specific legislation regarding cryptocurrency. Peirce believes that there is a lot that can be accomplished within the SEC’s existing authority.
Since January, the SEC has been diligently working on providing guidance on how existing securities laws apply to the cryptocurrency industry. This proactive approach is aimed at bringing clarity and stability to the rapidly evolving market.
However, there has been some criticism of the draft crypto market structure bill released by the US Senate Banking Committee, with industry players such as Ripple raising concerns about the SEC being granted too much power. Peirce acknowledges the complexity of the legislation but is open to collaborating with lawmakers to ensure that it benefits the industry as a whole.
Project Crypto: Modernizing Securities Laws
SEC Chair Paul Atkins recently unveiled “Project Crypto,” a initiative aimed at updating securities laws to better accommodate the digital asset space. Commissioner Peirce has expressed satisfaction with the progress of the project, highlighting the collaborative efforts of SEC staff and industry leaders.
Meetings with key players in the cryptocurrency sector are ongoing, as the SEC seeks to gain insights and perspectives from various stakeholders to inform its regulatory approach.
Cooperation with the CFTC
The market structure bill also aims to clarify the jurisdictional boundaries between the SEC and the Commodity Futures Trading Commission (CFTC). Peirce emphasizes the positive relationship between the two agencies, noting past collaborations on regulatory issues.
Moving forward, the SEC and CFTC will continue to coordinate on implementing recommendations and ensuring a cohesive regulatory framework for the crypto industry.