The United States Securities and Exchange Commission (SEC) Commissioner Hester M. Peirce, often referred to as the “crypto mom”, is perhaps one of the few regulators who is an advocate of economic freedom and has actively been working towards developing a positive regulatory vision for cryptocurrencies.
In a recent interview, Peirce took a stab at the booming decentralized finance (DeFi) market, which she thinks will compel the SEC “to sit down and ask some fundamental questions about regulations.”
The DeFi market has been booming this season with all the food references drawing everyone’s attention. The SEC, however, looks at it merely as non-custodial lending protocols, synthetic stocks, and exchanges which are something that is tricky for the SEC to deal as some believe it involves the distribution of securities.
Hence Peirce says, “The goal of DeFi, as I understand it, is to eliminate intermediaries and to allow people to engage with one another directly. And typically, the way regulators have regulated the financial system is to regulate intermediaries.”
About the current state of crypto regulations, she said “Regulators have not done a great job.”
Peirce has voiced in favor of cryptocurrencies on many occasions, even against her own agency. When it comes to ETFs, she had even published a dissenting statement regarding the rejection of Wilshire Phoenix’s Bitcoin ETF application.
She also spoke against the outcome of Telegram’s legal battle with the SEC and even questioned the SEC in a speech.
“Who did we protect by bringing this action?” she said.
After getting re-elected for her second term, Peirce has expressed her interest in modifying existing crypto regulations to make it easier for Americans to access regulated cryptocurrency markets.
“My main priority, with respect to anything, and not just crypto, is to allow people in the market to engage in transactions that are mutually beneficial.”
Amongst are goals, she plans to revise a policy draft for her proposed “safe harbor” bill that would grant developers three years to build a working project without any SEC intervention.
However, Peirce is also unsure whether she would be able to bring about many changes.
“Bureaucracy is difficult,” she said. “It’s really hard to get anything done.”
She is also unsure about the implementation of her safe harbor proposal considering the regulatory stance of other commissioners whose voters are required to make this proposal a reality.