In her recent speech at Duke University, SEC’s (Securities and Exchange Commission) commissioner Hester Peirce gave 2022 cryptocurrency fallout lessons. She gave guidance on how regulators must approach cryptocurrency policy in 2023. Commenting on the ongoing bear market, Commissioner Peirce rejected the idea of bailing-out cryptocurrency projects.
She opines the cryptocurrency bear market would actually benefit the industry. Peirce states scammers must not misuse “investor desperation to commit fraud during turbulent markets.” But Commissioner Hester Peirce supports the cryptocurrency industry as a whole. After the TerraUSD collapse, Celsius ceased withdrawals, leading to a steep fall in market prices.
Sharing the news, Fox Business’ Eleanor Terrett tweeted:
Hester Peirce believes a bear market would ultimately strengthen the cryptocurrency industry. Peirce says the situation at hand is
not only for market participants to learn but… also for regulators to learn.
Commissioner Peirce stated that crypto “does not have a bailout mechanism,” and that it is “one of the strengths of that marketplace.” The cryptocurrency market can self-regulate, says Peirce.
Peirce advises cryptocurrency investors to ask questions if unreal high returns are promised. She says when in doubt, investors
need to be asking questions about its associated risks
Historically, Peirce has always been supportive of moderate cryptocurrency regulations. She has to her credit SEC’s Safe Harbor proposal (for new crypto projects to expedite development).
In a recent Forbes interview, Peirce expressed support towards the Responsible Financial Innovation (RFI) Act. The RFI Act is a bipartisan bill setting out the cryptocurrency industry rules. The RFI Act was introduced by Senators Cynthia Lummis (R-WY) and Kirsten Gillibrand (D-NY).
Peirce also favorably commented on Bitcoin ETFs in a recent speech. While the SEC has thwarted all spot Bitcoin ETFs, Peirce has requested the regulator to
stop denying categorically spot crypto exchange-traded products
Acting historically as a pro-cryptocurrency regulator, Commissioner Peirce shall step down from her SEC position in 2025 with a term end.
