‘Cryptocurrency mom’ Hester Pierce criticizes the SEC’s way of regulating cryptocurrencies

At the ETH Denver event, U.S. Securities and Exchange Commission (SEC) Commissioner Hester Peirce took the stage to voice her continued criticism of her regulator. Peirce has expressed dissatisfaction with the SEC’s approach to regulating the cryptocurrency industry, specifically criticizing the practice of “regulation by enforcement” and the SEC’s slow pace at approving Bitcoin exchange-traded funds (ETFs).

“I got the nickname.cryptocurrency momThank you for your support for cryptocurrencies and your criticism of over-regulation of digital assets.

What I’m reflecting on is that all of you are spending part of your brain wondering how to avoid being sued. – Hester Pierce, ETHDenver 2024

Peirce highlighted the recent case involving Grayscale, which he said presented the SEC with an opportunity to approve a Bitcoin exchange-traded product. She found it surprising that the SEC would need court intervention to even consider such approval. As Peirce looked back on her tenure in 2018, she recalled that the SEC had the opportunity to approve the first Bitcoin ETF that summer. She believed the SEC should have given the product the green light back then.

The commissioner also addressed the curiosity surrounding the SEC’s position on pending Ethereum spot ETF applications. While she acknowledged her interest in the results, she insisted she could not disclose more information because the matter is currently under review by the SEC.

The SEC’s Aggressive Tactics: Filing Lawsuits Rather than Helping Compliance with the Law

One of the cryptocurrency industry’s main complaints with the SEC is that the agency prefers enforcement actions over clear regulatory guidance. Companies like Ripple, Coinbase, and Binance are engaged in a legal battle with the SEC, which has sued them rather than provide clear rules. Pierce, who frequently speaks at cryptocurrency events, criticized the SEC for not establishing clear guidelines in advance and taking action after the fact.

If we all wanted to wrap ourselves in bubble wrap, we would be a much less interesting country.

Peirce argued that the SEC’s approach of pushing companies out of the United States is counterproductive because it places them outside the regulatory reach of the U.S. agency. She advocated for a common-sense approach, suggesting that clear rules would be more effective in distinguishing between good and bad behavior than the current retrospective enforcement strategy.

The commissioner also mentioned the potential for collaboration between cryptocurrency enthusiasts and policymakers. She emphasized the importance of coming up with ideas that are ready to be implemented as SEC leadership, especially Chairman Gary Gensler, changes their views on cryptocurrencies. Peirce mentioned the concept of a “safe harbor” for tokens that provide basic publicity and allow time for projects to reach a point of decentralization.

In October 2021, U.S. Representative Patrick McHenry introduced the Clarity for Digital Tokens Act, which proposes a safe harbor in line with Peirce’s own proposal. The bill gives cryptocurrency startups up to three years to demonstrate “network maturity” and achieve decentralization to the extent that their tokens no longer meet the definition of a security under federal law.

Peirce acknowledged that Bitcoin has gained some legitimacy in the eyes of the SEC due to its decentralized nature. While advocating for fair regulation of cryptocurrencies, she also reiterated the importance of the SEC’s role in prosecuting fraud within the cryptocurrency industry. She emphasized that the SEC must pursue fraudsters while also carefully considering regulations that are appropriate for the industry.

Finally, Peirce expressed frustration with investors who demand government intervention only after making bad investment decisions. She emphasized that her freedom to invest comes with the responsibility of bearing the consequences of her own choices.

Smog, the new meme coin in the Solana ecosystem

Smog is the latest meme coin in the Solana ecosystem, following the success of popular predecessors such as Honk, Bonk, Myro, and Dogwifhat. The Smog team plans to stand out in the meme coin space with a large airdrop to increase visibility and attract a wider audience. The specific details of the airdrop have not yet been revealed, but 35% of Smog’s total supply is said to have been earmarked for this event, making it one of the most substantial airdrops in the cryptocurrency world.

But Smog isn’t just focused on airdrops. We are also committed to fostering a vibrant community. The project is launching a unique Zealy campaign to promote token ownership and engage early investors. These early supporters will have access to exclusive groups on platforms like Discord and X where they can earn points by participating in interactive quests. The goal is to encourage active community participation and reward loyal followers.

The overarching goal of these efforts is to bring Smog prominence within the Solana meme coin ecosystem. With strong community support and a unique engagement strategy, Smog could become one of the next big things in the world of memes.

To check out Smog and its progress, visit the official website and get a chance to participate in this thrilling new venture.

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