Heister Pierce, a commissioner from the Securities and Exchange Commission, believes that lack of crypto regulation is not necessarily bad. In fact, it is an opportunity for the industry to enjoy freedom.
In her speech at the University of Missouri School of Law, she noted that:
“We might be able to draw clearer lines once we see more blockchain projects mature. Delay in drawing clear lines may actually allow more freedom for the technology to come into its own.”
Pierce, who is sometimes referred to as the “Crypto Mom” because she opposed SEC’s rejection of the Winklevoss brothers’ ETF application, added that regulating the crypto industry will take a lot of time. And it is necessary to ensure that this process does not compromise the current laws. Thus the SEC needs to act appropriately and “protect investors, facilitate capital formation, ensure fair, orderly, and efficient markets.”
At the same time, she is critical of overregulation and enforcement actions. She also noted that some crypto projects cannot progress because of the existing regulatory framework, as “securities laws make them unworkable.” Concurrently, she admits that the SEC’s hesitation to deal with crypto projects might delude some investors. She emphasized:
“We rightfully fault investors for jumping blindly at anything labeled crypto, but at times we seem to be equally impulsive in running away from anything labeled crypto. We owe it to investors to be careful, but we also owe it to them not to define their investment universe with our preferences.”
Peirce concludes that the U.S. Congress can resolve the issue by creating a separate asset class among digital assets. Earlier she also stated that a BTC ETF will definitely be possible in the future. With the Cboe recently re-filing an application for an ETF fund, hopefully, her prophecy will soon fulfill itself.