“It is disconcerting to me that for three years now I’ve been asking for regulatory clarity, and we can’t seem to provide any”.
SEC Commissioner Hester Peirce, also known as “crypto mom” among the digital asset community, has voiced her bafflement at the agency’s lack of effort to provide clarity in the space.
Hester Peirce, who has recently published a statement together with Commissioner Elad Roisman against the way the agency is regulating cryptocurrencies, has delivered her harshest assessment yet at an interview with Yahoo Finance.
“It is disconcerting to me that for three years now I’ve been asking for regulatory clarity, and we can’t seem to provide any. I think this is really becoming a huge barrier to this industry being able to develop in a way that’s safe, but also in a way that allows innovation to happen. And it’s a real shame to me that we are not just taking up the mantle as regulators to develop a regulatory framework.”
There are currently two out of five Commissioners publicly voicing their opposition to the SEC’s regulation-by-enforcement practice in the digital asset space.
The majority remains willing to continue to file lawsuits against established companies that have been trying to understand and follow the regulatory framework for their activities.
Coinbase, the largest cryptocurrency exchange in the United States, has warned the public and investors that the SEC is preparing a case against the firm.
Circle, the issuer of the USDC stablecoin, has yesterday announced it is too under the scope of the securities regulator. It has received an “investigative subpoena” from the SEC’s Enforcement Division which requests “documents and information regarding certain of our holdings, customer programs and operations”.
Ripple Labs has recently provided feedback on crypto and blockchain laws, which can be summarized in three bulltet points: to encourage innovation sandboxes for crypto, increase public-private collaboration, and engagement & consideration by the Senate of existing legislative efforts.
The letter praised Commissioner Peirce’s proposal of a “safe harbor” under which network developers would be exempt for three years from the
registration provisions of federal securities laws, during which time they would be allowed to launch their products and develop their networks through token transactions.
If “network maturity” is achieved at the conclusion of the three-year period, token transactions would not trigger securities registration requirements, under SEC Peirce’s proposal.
Ripple also suggested the Senate to consider the two new proposed bills: the Securities Clarity Act (SCA) and the Digital Commodity Exchange Act (DCEA).
“Both the SCA and DCEA seek to provide legal clarity to industry, markets, and consumers in a way that an ad hoc, regulation by enforcement approach simply cannot.
“Moreover, these bills are an implicit acknowledgment that laws drafted for our legacy financial system cannot simply be overlaid on cryptocurrency and blockchain – rather, a tailored, flexible approach designed to address and remedy the specific challenges presented by this space is required. Ripple encourages the Senate to consider both the SCA and DCEA as they work to provide the certainty that is needed to keep industry within the United States while also maintaining the strong consumer and investor protections that have made American capital markets the best in the world”.
Talk of lack of clarity for the cryptocurrency space in the United States has been ongoing for years, but the SEC v. Ripple lawsuit has raised the stakes for everyone.
The “cryptocurrency trial of the century” is likely to set precedent and Ripple has no plans to settle for cheap. The blockchain firm eyes the lawsuit has an opportunity to help correct the regulatory environment for everyone within the crypto industry.
Using the words of Jeremy Hogan, an XRP community-friendly attorney, Ripple could save the industry from the SEC.
XRP Holders have most recently scored a major win despite seeing its motion to intervene denied. Judge Analisa Torres has granted them the Amicus Curiae status.
Movants, in their individual capacities, shall be permitted to act as amici curiae in this action. As such, Movants shall be allowed to assist the Court by briefing legal issues relevant to the case as approved in advance by the Court”, the Order stated.
There’s more on Ripple:
Ripple pushes SEC up against the wall: ‘If personal opinions, then no privilege”
Ripple buries SEC in paperwork in XRP lawsuit: Nearly 30,000 requests
Ripple running out of time as BIS ‘conspires’ to end cryptos’ threat to financial system
Ripple responds to Senator Toomey on XRP, the SEC, and how to do better
SEC v. Ripple: XRP’s utility and currency value backed by former U.S. Treasurer