Key takeout
Hester Perth says it is likely that many memecoins are outside the SEC’s regulatory jurisdiction. The SEC is moving from using enforcement measures to setting clear regulatory policies.
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Hester Peirce, head of the SEC’s Crypto Task Force, shows that many meme coins are likely outside the SEC’s current regulatory framework.
Speaking to Bloomberg Crypto on Thursday, Perth said the SEC’s standard regulatory approach is to assess each meme coin on a case-by-case basis.
“Facts and circumstances are important. When Peirce was asked if the President and First Lady founded Memecoin that made her work even more difficult, we always said facts and circumstances. You have to see it.”
“But many of the meme coins out there probably don’t have a home in the SEC under our set of regulations,” she said, and the council or CFTC would have a meme coin if they wanted to. He added that it can clarify the regulatory environment.
“I don’t think a lot of them are within our jurisdiction,” Perth reiterated.
Seek innovation-friendly crypto regulations
Peirce acknowledged that the SEC had relied heavily on enforcement measures to establish regulatory policies under its previous leadership.
“We use enforcement cases to set regulatory policies, and we are trying to change that,” she said. “So we’ll actually set up a policy and submit an enforcement case if necessary.”
She added that Securities Watchdogs need to be reviewed individually to “solve” existing cases.
Describing himself as a “liberty maximalist,” Perth expressed his dissatisfaction with the current regulatory environment of code and claimed to be thwarted innovation.
“The approach we’ve been working on with Crypto is one of the ways we use regulations to stop people from trying to do what they want to do,” she insisted.
Peirce believes that the SEC should focus on creating “basic parameters” that allow innovation to flourish.
“The regulations are designed to create some basic parameters, innovate people with the greatest freedom and try new things in it,” she explained.
While advocating for innovation, Perth maintained the importance of investor protection.
“It’s not free for everyone,” she said. “We have rules in place and these rules will be enforced.”
Commissioners also have other important issues, including the SEC’s efforts to process applications for exemption relief for products (ETFs) traded on exchanges, and the willingness of agencies to cooperate with crypto exchanges seeking registration. We also discussed issues such as:
She said the SEC is working with CFTC on a variety of issues, including derivative policies, and is willing to continue its collaboration on crypto policies.
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