Commissioner for the Securities and Exchange Commission of the USA (SEC) Hester Peirce, who was nicknamed “Crypto Mom” (Crypto Mom) for disagreeing with the SEC decision regarding Bitcoin-ETF Winklevoss brothers, believes that the delay in implementing the cryptoindustry regulation gives this area more freedom for self-development. She said this , speaking at the Law Faculty of the University of Missouri.
In her opinion, it will be easier for the regulator to determine the course of behavior when projects start moving into the maturity stage. This, according to the Commissioner, will take time. In particular, a subtle point is the use of the Howie test to determine whether tokens are securities.
Hesters noted that some projects, such as the blockchain-based startup Basis, which ceased operations at the end of last year and returned $ 133 million to investors, cannot combine their own vision and requirements of the securities law.
She believes that the US Congress can resolve such situations by accepting the idea that some digital assets can be considered as a separate class of assets, because the definition of a securities offer does not talk about how to regulate ICO . At the same time, in the SEC submission, when tokens are not investment contracts and are offered for use in functioning networks, they are not securities.
Hesters understands that postponing the SEC crypto-regulation solutions can cause frustration among innovators who are looking for quick answers. She invites project representatives to direct this energy to discussion with the regulator of approaches in this area, and compares herself to “an ATM repairman who sends a request for help on a piece of paper to the world.” She calls on entrepreneurs and innovators to help create proper regulation – without prejudice for securities laws and innovations, but ensuring the protection of investors and promoting the development of markets and capital accumulation.
Recall that at the end of last year, Pierce advised “not to hold your breath”, awaiting the quick approval of the stock exchange index funds based on Bitcoin . She believes that their approval by the regulator is “definitely possible,” but could take years.
Publication date 12.02.2019
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