Hester Peirce Claims That The SEC’s NFT Approach Isn’t Ideal
During a recent interview, the US SEC commissioner Hester Peirce provided her reasons for believing that the financial regulator’s treatment of cryptos and NFTs could be better.
According to multiple reports, the SEC is investigating the Yuga Labs — creators of BAYC NFT collection, regarding securities violations. However, the SEC hasn’t shared its take on Non-Fungible Tokens (NFTs).
Thus, creators and NFT projects feel uncertain and frustrated. But the SEC Commissioner Hester Peirce, popularly known as the “Crypto Mom,” provided her insights on the matter.
Peirce said that the SEC has yet to provide clarity on NFTs. But, she also said, “there is a huge complexity, and in these situations where there is such level of ambiguity, it’s important that people are extra careful. It’s not the ideal state for regulation.”
Pierce’s Anti-SEC Stance
Peirce is one of the five elected commissioners of the SEC and has always disagreed with how the agency approaches crypto regulation.
Peirce said, “I have repeatedly said this in the last two years. What a good government should do is lay down the laws. Only after people violate the law can you bring in enforcement actions. You should avoid using enforcement actions to inform people of the law. There should be some laid out rules first.”
Hester Peirce believes that SEC took the opposite approach regarding NFTs. Furthermore, Peirce thinks that the SEC could provide more clarity for NFT creators as they navigate the mass adoption of NFTs.
In her words, “our agency could do that whenever we wanted. Also, we have systems in place to do that. we can also work on an exempt order that could say, ‘if you meet these criteria, you are safe under the SEC laws.’
We could also come up with a letter that says ‘if you carry out any of these activities, we are not likely to carry out any enforcement action against you.” She added, “we could have done that whenever we wanted, but we are not doing it.”
At the same time, Peirce mentioned that there are specific characteristics of securities that NFT creators should avoid at all costs. Otherwise, they would be violating securities guidelines. However, she added that the SEC must readjust these guidelines for NFTs.
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