United States Securities and Exchange Commission (SEC) member Hester Peirce has acknowledged the failings in cryptocurrency regulation. According to Fox Business reporter Eleanor Terrett, Peirce holds herself partly responsible for the application of the Howey Test, a framework that determines whether a financial transaction is a security and therefore falls under the SEC’s supervision.
Peirce’s Confession is a Warning
Peirce’s admission is an important warning about the uncertainties in cryptocurrency regulation. He emphasized that clearer and more effective guidance is needed in the rapidly evolving cryptocurrency world. Peirce Peirce called the current situation a “cautionary tale” for other regulators, noting that deficiencies within the SEC and the crypto industry need to be addressed, and expressed the importance of a more transparent and consistent regulatory environment that supports innovation. A Prize Pool Worth 21 Million TL Awaits You from BinanceTR! Participating and winning has never been easier.. You can sign up to BinanceTR from this link. Get your first crypto!
Peirce’s comments come amid SEC Chairman Gary Gensler’s efforts to reinterpret the Howey Test. Gensler aims to further expand the SEC’s jurisdiction, particularly by expanding the “joint venture” criterion. The move could make it more likely that cryptocurrencies will be classified as securities. The move is also seen as part of Gensler’s efforts to crack down on the crypto industry ahead of November.
Gensler’s aggressive approach has had a profound impact on the cryptocurrency industry, with Eleanor Terrett also commenting,APPLICATION The strategy of “regulation through regulation” continued unabated throughout the summer. It is emphasized that Gensler is in a rush to take important steps in the sector before November.
Gensler’s Hasty Attitude Revealed in OpenSea Example
Gensler’s hasty move has also affected platforms like OpenSea. NFT marketplace OpenSea announced that it had received a Wells notice from the SEC. This has caused serious concern among creators and artists. OpenSea argues that the SEC’s move threatens the creative potential in the industry.
Peirce’s statements to the SEC crypto money It highlights the challenges it faces in regulating the sector, while also reiterating the industry’s need for a clearer and fairer regulatory framework. It remains to be seen whether the new SEC administration will address these issues impartially.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
