SEC Softening Stance on Cryptocurrency?

May 31, 2018
Cryptocurrency and Blockchain Tracker

Recent comments by U.S. Securities and Exchange Commission (SEC) Commissioner Hester M. Peirce offer the possibility of a softer stance by the SEC emerging on a number of issues relating cryptocurrency. Speaking before the Medici Conference in Los Angeles earlier this month, Commissioner Peirce urged regulators to approach initial coin offerings (ICOs) and tokens with “intense curiosity,” favoring “appropriate regulatory allowances that clear the way for innovation to flourish” and where “the regulator leaves ample room for innovators to develop their ideas without the regulators sitting at their shoulder taking part in each creative decision.”

Commissioner Peirce expressed concern that regulatory approaches that either misunderstand blockchain technology, are too adversarial or insert the regulator “inappropriately into the creative process” would lead to “bad regulation.” Noting that “the world of tokens and ICOs is still in its infancy,” she observed that resolving the question of whether cryptocurrency tokens are appropriately regulated as securities is “extremely important,” as “[d]etermining the appropriate regulatory regime also will mean determining the shape these transactions will take as they mature.”

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