Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
The U.S. Securities and Exchange Commission (SEC) regularly draws the ire of crypto proponents who are frustrated at its failure to support innovation and entrepreneurship. Despite this, some have warmed to the agencyâs opinionated commissioner Hester Peirce, who has adopted the moniker of âCrypto Mom.â At a compliance conference this week, Peirce spoke positively about crypto assets, expressing the belief that they could one day become âthe money of the internet.â
Also read: Venezuelaâs Central Bank Indicates Plans to Stockpile Bitcoin
Crypto Mom Draws Applause at Digital Asset Summit
The Digital Asset Compliance and Market Integrity Summit isnât the sort of event where crypto bros go to exchange fist bumps and shill token sales. With so many compliance professionals in the house, plus the SEC Commissioner herself, all talk of market manipulation is firmly geared around combatting, not abetting it. Despite the serious nature of the inaugural event, organized by SaaS transaction monitoring firm Solidus Labs, there were some lighter moments.
âI got a card for Motherâs Day saying âHappy Motherâs Day Crypto Mom,ââ confessed Hester Peirce after taking the stage to deliver her keynote on Thursday, âand I couldnât be happier.â Like SEC chair Jay Clayton, Peirce has earned a reputation for even-handedness: she wonât turn a blind eye to the worst excesses of the crypto space, but nor is she trying to stifle legitimate business.
Aside from her comment about digital assets having the potential to become âthe money of the internet,â Peirce used the phrase âtransaction mechanismsâ to describe the way she sees cryptocurrencies operating. She was also frank about the failures of the SEC in the past, conceding âWhen I came to the SEC, one of my hopes was to help change the way it addresses innovation ⊠I saw it was slow.â
As Fiscal Year Closes, Further Enforcement Expected
The SECâs fiscal year draws to an end on September 30, and some analysts believe the agency may finish with a flourish by taking action against fraudulent crypto projects. In his Money Stuff column on September 25, Matt Levine cited the SEC charging the founder of Fantasy Market, âa purported online adult entertainment marketplace, with orchestrating a fraudulent initial coin offering (ICO).â
As the SECâs complaint explains, the founder âclaimed that Fantasy Market would allow participants to control live adult entertainment performances by paying for specific requested activities with the Fantasy Market digital token.â There were also repeated claims of profiting from buying tokens in the projectâs whitepaper, which is a surefire way to get the SECâs spidey sense tingling. With Kik closing down its messaging app due to an SEC lawsuit, the agency has issued a warning shot that it is still closely monitoring the crypto space.
No to ICOs, Yes to Innovation
Thereâs nothing to suggest that the SECâs view on token sales â whatever acronym they may assume â will be softened any time soon. U.S investors can trade utility tokens on regulated exchanges, but they canât purchase them via a token sale in most cases. When quizzed at Thursdayâs New York summit on whether the U.S. risks being left behind to countries that are more receptive to crypto, Peirce admitted this presented a threat. Emphasizing the need for the SEC to strike a balance when regulating crypto businesses, she said:
If you want a government thatâs more forward-thinking on innovation, that means that if something goes wrong, you canât go running back to the government and say âHey, you didnât protect me from myself!â ⊠I think we need to be a little less paternalistic.
Hester Peirce earned warm applause at the Digital Asset Compliance and Market Integrity Summit, but sheâll have her work cut out in winning over hardline SEC skeptics. âMaybe this will be the year that the SEC stops going after the âlow hanging fruitâ and actual nails one of the literally thousands of frauds in this godless industry,â tweeted crypto analyst Nic Carter.
Solidus Labsâ market surveillance software for exchanges
Solidus Labs and its partners have expressed the desire to build upon Thursdayâs summit, with the goal of promoting better industry standards through voluntary cooperation between crypto exchanges and other ecosystem participants. Should that lofty vision be achieved, the SECâs enforcement division might be able to direct the bulk of its energies elsewhere next year. For now, though, it looks like thereâs still some low hanging fruit to be purged.
What are your thoughts on the SEC Commissionerâs remarks? Let us know in the comments section below.
Images courtesy of Shutterstock.
Did you know you can verify any unconfirmed Bitcoin transaction with our Bitcoin Block Explorer tool? Simply complete a Bitcoin address search to view it on the blockchain. Plus, visit our Bitcoin Charts to see whatâs happening in the industry.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.