Regulatory policy

“Rush for radical regulations” – Hester Peirce criticizes the SEC’s agenda

US Securities and Exchange Commissioner Hester Peirce says the SEC’s recently released list of rules is full of “hot” topics implemented in unreasonable haste, while crypto was ignored.

Commissioner Peirce, sometimes referred to as Crypto Mom for her positive views on cryptocurrency, released a statement regarding the SEC’s Spring 2022 Regulatory Agenda and SEC Agency Rules List.

Although the SEC’s listing does not contain any entries that explicitly reference cryptography, Perice noted that one of the proposed rules, amendments to Rule 3b-16 of the Exchanges Act, “could regulate protocols or crypto platforms via an unmarked backdoor”.

She then named four crypto-related areas where regulatory clarity “would be appreciated.” These included the definition of securities and custodial issues, including the agency’s controversial Staff Accounting Bulletin 121.

Related: SEC’s Hester Peirce Opposes Crypto Bailouts – SBF Didn’t Get the Memo

Peirce also criticized the agency’s program, saying the SEC set “the wrong goals and the wrong method to achieve them”, saying the agency focused on “burning issues outside of our mandate”. , such as diversity, climate change and human capital. management.

The agenda also reflects a “rush for sweeping regulations,” Peirce said, with short comment periods and market participants forced to implement multiple rules simultaneously.

“The agenda, if passed, risks triggering the regulatory version of a rip current – fast-moving currents moving away from shore that can be deadly to swimmers. […] The pace and character of regulations on this program are creating dangerous conditions in our capital markets. »

Peirce is often the only dissenting voice on the SEC board, especially when it comes to crypto. She criticized the agency for “directing enforcement” and failing to provide industry with regulatory guidance.