Altcoin News: Hester Peirce Criticized the SEC for Not Wanting to Provide the Crypto Industry with Clear Guidance

May 10, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

SEC Commissioner Hester Peirce expressed concern about the inability of the US Securities and Exchange Commission to provide the cryptocurrency industry with clear guidance.

On May 9, Pierce published the letter on the Securities Law Enforcement Forum, where she stated that the SEC’s unwillingness to take any meaningful measures would ultimately be a deterrent to the development of this space.

Peirce acknowledged that her department was cautious in approving new regulatory concepts. At the same time, representatives of developing industries are forced to obey the current laws in the field of securities, often without having an idea of ​​how they should act in certain situations.

She also criticized the SEC leadership, in which tokens issuers are invited to follow Howie’s test principles when evaluating their financial instruments. According to Peirce, a fourteen-page document is too complicated for those who do not have a background in securities law. Thus, the management does not clarify the situation around the release of crypto-tokens, but makes it even more “destructive.”

“This approach, which consists of listing all sorts of factors without any clear message, is incomplete. We still need to work on explaining which of these factors are most important when making decisions.” “We should not be trying to guide innovation, but we also should recognize that we cannot stop it and embrace the potential for positive change that innovation offers. Our silence is likely to simply push this innovation and any attendant economic growth into other jurisdictions that have done their work and provided clear guidelines for the market participants to follow,” she added.

Author: Marko Vidrih