SEC Commissioner Calls for 7 Crypto Reforms for Urgent Congressional Action

The SEC commissioner of the United States has just proposed a bold plan that includes 7 proposals, calling on Congress to reduce administrative procedures, empower existing agencies, and protect peer-to-peer crypto from excessive regulatory interference.

Hester M. Peirce – SEC Commissioner## SEC Commissioner Pressures Congress for Rapid Crypto Reform Framework

Commissioner of the U.S. Securities and Exchange Commission (SEC) Hester M. Peirce has called on Congress to simplify cryptocurrency oversight and reduce regulatory ambiguity at the 8th annual Blockchain DC conference of the Digital Chamber in Washington D.C. on March 26. Peirce is currently leading the newly formed crypto task force at the SEC, an initiative aimed at creating clearer regulatory pathways for the crypto industry.

Based on her experience in establishing regulations among various agencies, Peirce argues that the overlapping duties among the vast regulatory bodies – including the SEC, the U.S. Commodity Futures Trading Commission (CFTC), the Financial Crimes Enforcement Network (FinCEN), and state agencies – lead to inefficiency and high costs for both market participants and regulators. She warns:

"This overlap is likely to worsen because crypto can represent anything from cash, financial instruments like stocks or futures, to a valuable piece of artwork."

To address these challenges, Peirce has put forward 7 clear recommendations for lawmakers. First, she advises against establishing a new agency; instead, Congress should empower existing regulatory bodies. Second, she suggests limiting the scope of new laws to apply only to platforms based in the U.S. or targeting the U.S. market.

Third, she called for the application of federal preemption in federal trade areas to reduce tensions with state laws. Fourth, she urged Congress to assign oversight of specific types of crypto to appropriate federal agencies. Fifth, Peirce requested legal clarity to allow the trading of various digital assets – including those not classified as securities – on platforms overseen by the SEC or CFTC. Sixth, she supported applying established regulatory principles from traditional financial markets to cryptocurrency, proposing that exchanges operate similarly to Alternative Trading Systems (ATS). Seventh, she emphasized the need to protect the rights of American citizens in peer-to-peer financial trading as a safeguard against excessive interference from centralized agencies.

Peirce also emphasized the importance of enabling regulatory agencies to maintain strong oversight under any amended framework:

"Regulatory agencies will be able to monitor and inspect trading platforms, while also taking enforcement actions against violations of customer protection rules, insider trading, and information disclosure breaches."

Her remarks reflect a balance between embracing innovation and maintaining essential market protections. While she acknowledged that developing an effective framework would not be easy, she was optimistic about the way forward, calling for collaborative action to achieve a balanced and effective regulatory structure.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should conduct thorough research before making any decisions. We are not responsible for your investment decisions.

• SEC considers withdrawing proposal to tighten cryptocurrency custody regulations
• Ripple calls on the SEC to establish clearer regulations for cryptocurrencies, proposing 3 solutions.
• The price of Chainlink (LINK) is reflecting the 2021 pattern – What’s next?

Minh Anh

@media only screen and (min-width: 0px) and (min-height: 0px) { div[id^="wrapper-sevio-d89f58f5-7b63-40be-98c0-6b1fd62584fb"] { width:320px; height: 100px; } } @media only screen and (min-width: 728px) and (min-height: 0px) { div[id^="wrapper-sevio-d89f58f5-7b63-40be-98c0-6b1fd62584fb"] { width: 728px; height: 90px; } }