Key Takeaways:
- The SEC Commissioner is worried that the regulator is not showing sufficient support for innovation in the crypto industry.
- She also expresses concern regarding the rising frauds within the ecosystem.
The meltdown of the crypto market is continuing and the Securities and Exchange Commissioner Hester Peirce feels that the authorities can do a better job of encouraging innovation within the space. She mentioned that the failure of the industry troubles her.
During the DC Blockchain Summit that took place this week, the commissioner shared her opinion about the current scenario of the market with CNBC. The scams involved in the crypto space are a major concern for her as “it’s the hot area of the moment”. She stated that the regulators have “sort of dropped the regulatory ball”.
Recently, Chairman Gary Gensler of SEC classified crypto as a “highly speculative asset class” and has also issued a strong warning to investors. Though the authorities are taking precautionary measures to ensure more protection, Peirce thinks that they are “not allowing innovation to develop and experimentation to happen in a healthy way, and there are long-term consequences of that failure.”
The market is highly unstable at the moment with the recent wild fluctuations in the market. With the stable coins losing their pegs and their value touching the ground, the market witnessed one of the greatest falls in the history of cryptocurrency.
Investors have almost lost their faith in virtual assets after the recent crash and also because there are also significant risks involved as frauds in the space are on the rise. To this, the SEC Commissioner said, “We can go after fraud and we can play a more positive role on the innovation side, but we have to get to it, we’ve got to get working.” She further added that she is yet to see the authorities making the effort to support advancement in the industry.
