Forming a single regulator to supervise crypto wouldn’t be a panacea for the trade’s regulatory woes, stated U.S. Securities and Exchange (SEC) Commissioner Hester Peirce on CoinDesk TV’s First Mover Thursday.
“I actually perceive the impulse to name for one regulator. I’ve a couple issues with it,” Peirce stated. “Typically in Washington, if you construct one other regulator, all you get is all the prevailing regulators plus one.”
Coinbase is among the many voices calling for a new, single U.S. regulator to supervise crypto.
Peirce – affectionately referred to as “Crypto Mom” by many cryptocurrency fanatics for her longstanding assist for the trade – has been outspoken about what she sees because the SEC’s failure to supply a working regulatory framework for the crypto trade, and its tendency to control by enforcement.
“We have a possibility to sit down down and work with individuals, lots of whom have been very open about their willingness to come back in and work with us and develop regulation,” Peirce stated. “So far, we’ve actually supplied little or no concrete regulatory progress.”
“What we’ve accomplished as an alternative is we’ve introduced one-off enforcement actions,” stated Peirce.
Though these enforcement actions have elevated beneath the management of SEC Chair Gary Gensler, Peirce identified that Gensler’s method to crypto regulation – which is way more aggressive than that of his predecessor, Jay Clayton, who now works for Sullivan & Cromwell and advises a number of crypto corporations, together with Fireblocks – is proof of Gensler’s need to attract clear traces for the trade.
“I’m simply hopeful that we set our minds to work at constructing one thing that is smart by way of regulatory readability, as an alternative of at all times simply falling again on enforcement,” stated Peirce.
The SEC appears to be like at NFTs
Non-fungible tokens (NFTs) exploded in reputation in 2021, reaching $22 billion in buying and selling by December.
According to Peirce, the SEC is taking discover.
“Given the breadth of the NFT panorama, sure items of it would fall inside our jurisdiction,” Peirce advised First Mover. “People should be serious about potential locations the place NFTs may run into the securities regulatory regime.”
While Peirce couldn’t say precisely the place the SEC’s points with NFTs may lie, she warned in regards to the fractionalization of NFTs – a rising market which surpassed $215 million in buying and selling in 2021.
“I believe that’s an space the place individuals do should be cautious,” Peirce stated. “I believe we’ll see throughout 2022 an growing fractionalization of NFTs as a result of these are worthwhile belongings.”
When will a spot bitcoin ETF be authorized?
The ProShares Bitcoin Strategy ETF made historical past in October as the primary bitcoin ETF to obtain approval from the SEC and start buying and selling.
But the ProShares ETF is a futures ETF – no spot ETF purposes have been accepted, and Peirce stated the SEC doesn’t seem like in a hurry to approve any spot ETFs.
“I can’t consider we’re nonetheless speaking about this as if, you understand, we’re ready for one to occur,” Pierce stated. “We’ve issued a collection of denials even not too long ago, and people proceed to make use of reasoning that I believe was outdated on the time.”
Pierce added that she doesn’t perceive the SEC’s reasoning for denying the spot ETF purposes, which makes it troublesome for her to foretell the potential for a spot ETF approval in 2022.
“Chair Gensler has stated he desires to see platforms registering with us,” Pierce stated. “So possibly that’s what it takes for a spot product to get authorized.”
Read extra: SEC Rejects Kryptoin Spot Bitcoin ETF Proposal