In the last year, much has happened in the regulatory area around. After a long period of restraint, authoritative legal foundations for digital assets have emerged, particularly in the USA. First and foremost, the Securities and Exchange Commission (SEC).
In an interview with Bitcoin.org, Hester Peirce looks at the market that has been growing for years and the innovations in the Blockchain sector. Indeed, these have increasingly been able to develop outside the United States. The United States is lagging behind in terms of regulation, according to Peirce.
It’s foolish to stymie the innovations around Bitcoin, and not take advantage of the new opportunities created by digital assets.Hester Pierce, Commissioner SEC
To date, she said, innovation has been prevented rather than actively shaped. This would have allowed other countries to get a head start, which needs to be caught up.
Central Bank Digital Currency (CBDC)
Hester Pierce sees potential for a stablecoin issued directly by the FED, but so too in the various private alternatives. She does not see Diem as posing the same threat as the European Central Bank (ECB), but rather the vulnerable, centralized approach. It points to the CBDC of China’s central bank and argues against its built-in surveillance potential.
The SEC will appoint a new chair in the next few weeks. In-depth knowledge of the crypto industry is required. A regulatory framework is to be created, which should promote the innovations around Bitcoin and no longer hinder them.
Cryptocurrencies important for freedom
Hester Pierce advocates for the possibilities of a freely accessible market. Whether freedom fighters, oppressed housewives or street traders, the pseudonymized accounts enable liberal participation from different situations and needs. The goal is not to ban the tool, but to prevent people with bad intentions. People are people, and they will use the available tools for different purposes.
She deliberately puts the myth that Bitcoin is used to finance crime into perspective, pointing to the tracking of electronic transactions. Unlike cash, transactions are stored forever in the Blockchain.
Regulation called for
There is uncertainty about digital assets in the States, as Peirce admitted in an interview with CVJ.CH. Diverse national and state authorities view crypto tokens and currencies differently. The new chair is expected to listen to these stakeholders, standardize regulation, and thus create legal certainty. The commissioner hopes it will evolve into a “safe harbour” which will at least allow people to not have to worry about securities laws as they develop their network.
The decentralized approach of the crypto-based financial system makes regulation more difficult, but the benefits of distributed systems should not be destroyed by the regulator. Let the market decide whether consumers are more likely to trust a CBDC or a private stablecoin.
*Originally posted at CVJ.CH