‘Mother of Crypto’ Hester Peirce Expresses Concern About SEC’s Regulatory Approach to Digital Assets: ‘I’m Worried It May End Up Taking Away Several Benefits Crypto Offers’

SEC Commissioner Hester Peirceaffectionately referred to as “Crypto Mom,” admitted that the current model of interaction between the regulator and cryptocurrency companies is not working well.

what happened: Speaking at X Spaces on Wednesday, Pierce lamented that the SEC has failed to create a model where companies can come and have productive discussions to find a way forward that meets both commercial needs and securities laws.

Pierce echoed what many in the crypto industry accuse the SEC of overstepping its jurisdiction.

“Some of the activities are just completely outside the capital markets and shouldn’t be in our purview at all,” said Pierce, one of the SEC’s two Republican commissioners.

Purse added that the SEC and Congress should have a healthy debate about which aspects of the cryptocurrency space should be regulated and by whom.

She also expressed concern about regulatory approaches that push toward centralization in an industry known for decentralization. “I worry that they end up taking away a few benefits that crypto offers.”

See also: Donald Trump’s pro-Bitcoin stance influenced Ethereum ETF approval, according to analyst

Why it matters: Heister is known for his supportive stance on cryptocurrencies, resisting regulatory agency efforts to block Ethereum ETH/USD ETFs and target companies such as Coinbase and Kraken.

She also criticized the SEC’s cautious approach to cryptocurrency legislation, saying, “The government is not there to protect people from their own choices. It is there to protect people if someone else harms them.”

Peirce is speculated to be the favorite to succeed the current SEC chairman Gary Gensler if he is a republican candidate Donald Trump returns to power.

In its latest attack on the cryptocurrency industry, the SEC has hit the NFT market OpenSea with a Wells Notice claiming that NFTs traded on its platform should be classified as securities.

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