US Securities and Exchange Commissioner (SEC) Hester Peirce has recently highlighted the need for a change in regulatory approach to crypto, indicating a departure from aggressive enforcement strategies over the past few years.
recently Interview In “Bloomberg Crypto,” Perth discussed the SEC's ongoing review of enforcement actions against crypto companies, highlighting the atypical use of enforcement cases to shape regulatory policies.
Sec's Hester Peirce advocates for policy reform
“For the past few years, enforcement cases have been used as a way to create regulatory policies. It is very atypical,” Perth said. “We're trying to get back on the path of actually using other tools to create policies.”
The SEC's recent demand to suspend lawsuits against Binans, the world's largest cryptocurrency exchangefurther showing this shift. The committee previously sued Binance and its co-founder, Changpeng “CZ” Zhao in 2023. This alleges that the platform mistreated its customer funds and violated securities laws.
The SEC is currently seeking a 60-day stay in the lawsuit, citing the ongoing development of a regulatory framework for digital assets. Perth declined to comment on the potential outcome of the lawsuit, highlighting the need for a case-by-case evaluation.
Perth is currently leading the crypto-center Task Force Within the SEC, which aims to develop a “comprehensive and clear” regulatory framework. Within her objectives, it is to determine which digital assets are eligible for securities and identify areas outside the jurisdiction of the SEC.
Peirce's previous efforts have been gaining praise from the digital asset community, particularly for their support of opposition on Bitcoin Exchange Sales Funds (ETFs) and various SEC enforcement measures, earning the nickname “Crypto Mom.” .
Congress' inaction will result in cryptographic classifications being classified within range.
Historically, the SEC's aggressive stance on regulating crypto has been exacerbated by the inability to pass legislation that clearly defines cryptocurrencies. Securities or goods.
This lack of clarity led to confusion and legal challenges, including a key court ruling that rejected the SEC's XRP classification as suspicious security in place of goods, as in the case of Bitcoin.
Support may be on the horizon as bipartisan laws like the FIT21 bill aim to portray the respective jurisdictions of the SEC and Commodity Futures Trading Commission (CFTC) over digital assets . Additionally, another proposed bill is attempting to establish special status for Stablecoins.
Perth had It was previously recognized Since first applying the Howey test to cryptocurrency in 2017, it has characterized the SEC's approach: “legal inaccuracy and commercial impracticality.”
This environment slowed the litigation process, prevented the creation of rules, and left many crypto projects at Limbo. Looking ahead, Perth expects an increase in applications, highlighting the importance of focusing on fraud and fraud Regulation relief And a letter without action.
She highlighted the need for hardworking practices during this transition period to ensure regulatory clarity in the evolving digital asset market.
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