The American commissioner for securities and exchanges (SEC) Hester Peirce recently underlined the need for a change in the regulatory approach to crypto, signaling a gap of the aggressive application strategies in recent years.
In a recent interview On “Bloomberg Crypto”, Peirce discussed the continuous examination by the dry of its application measures against cryptographic companies, highlighting the atypical use of application cases to shape the regulatory policy.
Hester Peirce of dry for policies reform
“In recent years, application cases have been used to develop a regulatory policy; It’s very atypical, ”said Peirce. “We are trying to return to a path where we really use our other tools to develop a policy.”
The recent demand for the dry to suspend the dispute against Binance, the largest cryptocurrency in the world exchangealso illustrates this change. The commission had already continued Binance and its co-founder, Changpeng “CZ” Zhao, in 2023, alleging that the platform has poorly managed customer funds and violated securities.
The dry is now looking for a 60 -day stay in the trial, citing the continuous development of a regulatory framework for digital assets. Peirce refrained from commenting on the potential results of the trial, highlighting the need for an evaluation on a case -by -case basis.
Peirce now leads a crypto-axé working group Within the SEC aimed at developing a “complete and clear” regulatory framework. Among its objectives, there are to determine which digital assets are considered as titles and areas of identification which do not fall under the jurisdiction of the dry.
The previous efforts of Peirce have praised the community of digital assets, in particular for its support for Bitcoin negotiated funds (ETF) and its dissident opinions on various measures to apply the dry, winning the nickname of “Cryptographic mom”.
The inaction of the congress leaves the classification of the crypto in the limbo
Historically, the aggressive position of the SEC on the regulation of cryptography was exacerbated by the inability of the congress to adopt legislation which clearly defines cryptocurrencies as one or the other Titles or products.
This lack of clarity has led to disputes of confusion and legal, in particular an important judicial decision which rejected the classification of XRP of the SEC as alleged guarantee instead of a commodity as in the case of Bitcoin.
Aid can be on the horizon, because bipartite legislation as the Fit21 bill aims to delimit the respective jurisdictions of the SEC and the Commodity Futures Trading Commission (CFTC) on digital assets. In addition, another proposed bill aims to establish a special status for Stablecoins.
Peirce had previously recognized “Legal imprecision and commercial impracticity” which characterized the approach of the dry since it applied the Howey test for cryptocurrencies in 2017.
This environment resulted in slow litigation processes and has embarrassed the regulations, leaving many cryptographic projects in the limbo. For the future, Peirce stressed the importance of focusing on fraud and misconduct while anticipating an increase in applications for regulatory rescue and letters without action.
It underlined the need for diligent practices during this transition period to ensure that regulatory clarity is obtained for the evolution of the digital asset market.
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