Hester Peirce Opines That Regulations Are Preventing Development In DeFi Industry
The blockchain industry has been growing at a fantastic speed within the last few months, but the new agitations for regulations might get in the way of its development. Advocates globally want a regulation that doesn’t impede the new technology’s growth, thereby leaving space for it to develop. Hester Peirce, popularly known as the ‘crypto mom,’ is a famous advocate of the crypto and DeFi sectors, and she has made this public.
The US commissioner shared this piece of information during a visit to a university. She educated the students about the blockchain technology, and opined that regulations might hinder its growth. The commissioner is not afraid of using her influence to promote and improve regulations concerning the industry.
Crypto mom wants crypto-friend regulations to promote growth
The regulator wants more freedom for the DeFi sector to allow it grow, and told the global community to work on their regulations. Last year, many countries decided to lay down a regulatory framework for digital assets, and she opined that stringent rules would hinder a huge part of the industry. While she is interested in all aspects of the cryptocurrency sector, Peirce focused on the decentralized finance industry during her visit.
The regulator met with law students of George Washington University and shared that the sector faces some challenges due to regulations. Crypto mom opines that the appropriate bodies have to create a law that would allow the industry to maximize its potential. According to her, the sector promises numerous things to users, including transparency, open access, and systemic resilience.
She added that the regulators, including herself, need to recognize the advantages and disadvantages, provide legal and regulatory clarity to allow the sector to have enough freedom to experiment and grow. Peirce said the experiment might give DeFi the potential the compete against the centralized financial system.
DeFi industry continues to grow
DeFi is a growing industry that got massive recognition last year, as it recorded a higher market cap than it had ever had. The space has brought in many projects where investors are buying into and rapidly investing to assure gains. At the beginning of 2020, the industry was very small and had the market cap in millions before gaining more recognition as the year went by.
Interestingly, most of the DeFi projects are on the Ethereum network, and they offer unique services for interested users. The projects assure holders of significant profits while stopping the issue of intermediaries along the line. The financial system does not use intermediaries, thereby maximizing user’s privacy and control.
The regulator also said that the technology would help regulators create laws to protect investors and markets’ rights. Pierce said that the public usually looks at innovation with suspicion and hopes that it would change. The popular regulator was appointed a commissioner in 2018 and has worked towards helping regulations protect investors’ interests.
Recently, crypto mom was sworn in for a second term, and that got an applaud from a significant part of the digital asset group. Her view towards the crypto industry has always been positive as she believes that the sector has much potentials.
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