Esther Pierce: “Regulators need to clarify the regulation of cryptocurrencies after recent market developments”

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The commissioner of the US Securities and Exchange Commission suggested that recent negative events in the cryptocurrency market will prompt regulators to clarify the rules for overseeing the industry.

We are talking about the bankruptcy of severalcryptocurrency lenders, the collapse of the Terra project and the recent collapse in market prices. Hester Peirce told Bloomberg that the incidents had attracted the attention of regulators in Washington. Therefore, it is possible that they will finally flesh out regulations regarding cryptocurrencies. Industry participants have long criticized the SEC for its reluctance to clarify the standards by which crypto companies must operate.

Pierce explained that it is now difficult for the departmentunderstand how cryptoassets can fit into the current legal regulatory framework, and whether it makes sense to make changes to it. According to Pierce, some politicians are not happy with the rapid development of the industry, but many recognize that cryptocurrencies are here to stay:

"Some lawmakers in Washington wantsee the disappearance of cryptocurrencies. But they understand that this is unlikely to happen. There are even proposals to set very high commissions so that people trade less crypto assets, and this seems counterintuitive to me. People should have the right to participate in transactions if both parties wish. The regulator must have a compelling reason to get involved. Therefore, it is better to think about where it would be appropriate to introduce regulation of crypto assets.”

Pierce is known for her friendly attitude towardscryptocurrencies, for which she is sometimes called “cryptomom”. She previously called on the SEC to speed up the adoption of cryptocurrency ETFs in the United States to keep up with Canada and Brazil, which have already approved these investment products.