Crypto Mom warns regulators not to over-regulate the cryptocurrency space or risk innovation
By Bob Garcia
Hester Peirce reiterates her assertion that too much regulation will stifle crypto innovation
The last few weeks have seen several US regulators begin a strong move to place strict laws on the crypto space. However, it appears that these decisions run completely counter to the ideals of Hester Peirce of the US Securities and Exchange Commission (SEC). Peirce has repeatedly urged regulators not to continue with the process that aims to over-regulate the crypto space, and this time she is emphasizing it once again, hoping her message is heard.
Peirce, nicknamed “Crypto Mom” due to her strong support of and positive stance on crypto, has made it clear that she strongly disagrees with the need for strict regulatory policies, as she finds no clear reason to do so. According to Peirce, it is very common to see how regulators tend to have a knee-jerk reaction whenever it comes to emerging market spaces. In the case of crypto, however, there should be no major concerns, especially since the market could rather decline if overreaching regulations are made.
The commissioner added that the application of stricter regulatory policies could eventually cause the elimination of the ability of market participants to be able to continue to conduct their usual transactions. Peirce has made it clear that there is insufficient need to emphasize government regulation, and rather advocates that the industry itself should be in charge of its regulatory activities. A clear example of this has been Japan, where its cryptocurrency self-regulation has been somewhat effective. All this latest call from Peirce comes on the heels of signs of a significant push for tougher measures for the country’s cryptocurrencies.