SEC Commissioner Hester Pierce has said that the booming DeFi Sector would prove to be a hard nut to crack for regulators in a virtual meeting.
One of the factors that have hindered the growth of digital assets worldwide is the lack of regulatory framework amongst countries. Aside from the fact that illegalities have rocked the use of digital assets, the regulators have failed to look beyond the bad aspect and focus on the coins’ good potential. A typical example is the United States of America, where the Securities Exchange Commission (SEC) has failed to give a clear guideline on how crypto activities should be run. Even at their slow pace in releasing a framework for the use of digital assets, SEC Commissioner Hester Pierce says the agency is open to changes as regards crypto assets in the future.
Hester Pierce asks SEC to change their view of digital assets
While speaking at an interview, Hester Pierce, often referred to as crypto mum, said the SEC’s view towards digital assets needs to change fast. Pierce has shown her unwavering support for crypto and blockchain in the past because she believes that both elements would foster economic freedom. She noted in the interview that the
space is evolving and is currently undergoing a rapid rise, which means more people are likely to flood into the market in the coming months.
“While we’ve been very slow in giving guidance, there is more and more interest from a wide spectrum of people, both inside the crypto space as well as inside the traditional financial institutions who are asking us for guidance. So I think we’re going to be forced to confront that more and more in the coming years”, Commissioner Pierce said. Furthermore, she said that the crypto space is a vast space that will soon begin to witness more firms’ uprise, and even retailers might start to accept payments in digital assets. Having this in mind, she hopes to return for another term to champion the cause to make the SEC see why they should regulate the space.
Commissioner says she likes the way users govern the tokens on the DeFi platform
Furthermore, the Commissioner hopes that the Securities and Exchange Commission would learn to be lenient with crypto startups and guide them accordingly. Pierce also noted that SEC’s guidance and regulation would help the new startups nice forward with innovation and entrepreneurship. Furthermore, in her speech, she talked about the Decentralized Finance sector and how the growth will be an obstacle to SEC regulations. Noting one good thing about the DeFi sector, Pierce said she likes how users can directly govern the tokens.
According to Pierce, this feature would challenge the regulations of the SEC in the DeFi sector. “I think when you have the people who are using something deciding its future, then the changes that happen are decided by the community together. And that’s a sort of regulatory function. It’s not a government regulatory function, but it’s a regulatory function by the people who are using it,” said Commissioner Peirce. In a statement after her re-election in August, Pierce said she would work tirelessly to make crypto services available to American citizens.
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