Strict Regulations on Crypto Spells Woes for Investors, Says US SEC Commissioner
One of the commissioners at the United States Securities and Exchanges Commission has warned against too strict rules on cryptocurrencies. She says that her colleague’s efforts to impose such regulations will give investors a tough time doing business in the US. Instead, Hester Pierce wants financial regulators to adapt accordingly to the growing cryptocurrency market cap.
Mrs. Pierce said the idea that regulators have to grasp every tiny detail of financial aspects vastly discourages innovation. She continued to say,
“I am concerned that the initial reaction of a regulator is always to say ‘I want to grab hold of this and make it like the markets I already regulate’………am not sure that’s going to be great for innovation.,
Tough Cryptocurrency Financial Conditions
Hester Pierce’s voice shows there could be a division in the SEC in terms of opinions on cryptocurrency adoption. Moreover, Pierce’s remarks probably mean US financial regulators may battle each other in cryptocurrency regulations. She is one of the five US SEC head commissioners, so her stance on digital currencies’ rules is quite interesting.
The SEC’s chair, Gary Gensler, recently suggested that the US Congress should take up the mantle in regulating cryptocurrencies. Mr. Gensler said that neither his employer nor CFTC has a framework covering investors in crypto exchanges from fraud and manipulation.
However, Gensler did not outline what the rules should entail. The chair is interested more in protecting investors from ‘celebrities’ who may try to exercise market manipulation.
According to former US President Donald Trump, regulations on cryptocurrencies like BTC should be very high. Trump said that he preferred the USD to crypto as a world reserve currency.
Crypto’s Rising Popularity
It appears that US financial watchdogs are wary of the rise in popularity of cryptocurrencies in the world. The US Treasury recently announced their plans to pass the law stating all crypto transactions above $10K are reportable to the IRS, fearing tax evasion will come into play.
BTC’s price soared to highs above the $50K mark, and it isn’t rocket science to know investors see bitcoin as a profitable investment. In addition, cryptocurrencies like BTC have pushed the Office of the Comptroller of the Currency(OCC) to sit down with other financial authorities to regulate the crypto market.
Wall Street financial analysts had previously foretold that monetary authorities have to jump ship because the popularity of digital currencies is accelerating upwards. However, from the looks of the situation, it is not slowing down any time soon.