Share this article
SEC’s Peirce Warns Against Stifling Crypto Innovation
“You can have pretty effective self-regulation,” Peirce said in an interview with the Financial Times.
By Ian Allison
Updated May 9, 2023, 3:20 a.m. Published Jun 9, 2021, 10:45 a.m.
Make us preferred on Google
Hester Peirce, one of five commissioners on the U.S. Securities and Exchange Commissioner, said in an interview in the Financial Times that overzealous regulation of cryptocurrency in the U.S. could hinder innovation.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
“I am concerned that the initial reaction of a regulator is always to say ‘I want to grab hold of this and make it like the markets I already regulate’,” Peirce told the FT. “I am not sure that’s going to be great for innovation.”
Peirce has been a longtime advocate of a calibrated approach in regulating crypto. During CoinDesk’s Consensus21 last month, she said custody rules in the U.S. should be updated to accommodate digital assets .
In the Financial Times interview, Peirce pointed out that self-regulation remains a “pretty effective” way to address digital assets, a comment the FT suggested exposes a split at the top of the SEC, as its new chair, Gary Gensler, looks to tighten regulation of cryptocurrency.
The SEC commissioner also defended what she called the “gamification” of capital markets seen earlier this year when retail traders used the Robinhood platform to drive up the price of shares of video-game retailer GameStop – a phenomenon that is under the scrutiny of regulators.
“Gamification is not necessarily a bad thing; making financial platforms more user-friendly is not a bad thing,” Peirce said. “Platforms like this should look like the other platforms in people’s lives.”
See also: State of Crypto: Federal Regulations Are Coming Into Focus
More For You
Pudgy Penguins is building a multi-vertical consumer IP platform — combining phygital products, games, NFTs and PENGU to monetize culture at scale.
What to know:
Pudgy Penguins is emerging as one of the strongest NFT-native brands of this cycle, shifting from speculative “digital luxury goods” into a multi-vertical consumer IP platform. Its strategy is to acquire users through mainstream channels first; toys, retail partnerships and viral media, then onboard them into Web3 through games, NFTs and the PENGU token.
The ecosystem now spans phygital products (> $13M retail sales and >1M units sold), games and experiences (Pudgy Party surpassed 500k downloads in two weeks), and a widely distributed token (airdropped to 6M+ wallets). While the market is currently pricing Pudgy at a premium relative to traditional IP peers, sustained success depends on execution across retail expansion, gaming adoption and deeper token utility.
More For You
Circle faces first major 'threat' for institutional dollars from Tether’s USAT
While Circle's USDC has operated without a "credible domestic competitor," Tether's USAT has the potential to shake up the landscape, analysts said.
What to know:
- Analysts said USAT, the U.S.-focused stablecoin by Tether, could become the first credible domestic competitor to Circle's USDC token.
- USAT is "a threat to USDC" and could gain an edge through institutional partners and global USDT connectivity, Crypto is Macro Now's Noelle Acheson said.
- ClearStreet's Owen Lau called USAT “a manageable risk” for Circle, and noted potential "cannibalization" risk between Tether's two tokens.
Top Stories
