Hester M. Peirce, aka the beloved “Crypto Mom,” spoke openly on the state of the cryptocurrency industry, speculating that it may owe some thanks to the turtle pace of the U.S. government on the road to regulation. Her words came as part of an address to the University of Missouri School Of Law, February 8, 2019.
At first, a regulation-free cryptocurrency and blockchain industry was doing exactly as it should, operating without the involvement of a centralized authority. Though as we know, this hasn’t been a wholly positive experience for the industry.
With regulation at the crux of her speech, Peirce described the “freedom” that cryptocurrency projects are experiencing in a relatively unregulated sector, and as such, have had the opportunity to experiment and develop almost without restriction.
Peirce, Commissioner of the United States Securities and Exchange Commission (SEC), spoke thoughtfully with regards to the curveball of blockchain and cryptocurrencies that has been thrown to regulators, which has caused the SEC to “rethink its approach to innovation.”
“We, along with other regulators, are asking how existing rules apply in this space and whether a new regulatory framework would work better. If we act appropriately, we can enable innovation on this new frontier to proceed without compromising the objectives of our securities laws—protecting investors, facilitating capital formation, and ensuring fair, orderly, and efficient markets.”
Decentralization was also noted as a key challenge to regulation, though in this, she thinks that the grey-area in which the industry presently operates has had its benefits, saying:
“Ambiguity is not all bad, of course. We might be able to draw clearer lines once we see more blockchain projects mature.