A major financial regulator has warned that the US is lagging behind other countries in building a rational regulatory framework for the blockchain and cryptocurrency industries, and that this flaw threatens to deprive the US economy of those. benefits of new innovations. “I think we are certainly falling behind,” said Hester Peirce, one of the soon to be five commissioners of the Securities and Exchange Commission, during an interview on MarketWatch’s Investing in Crypto virtual event series on Wednesday. “We have seen other countries take a more productive approach to regulating cryptocurrencies. Our approach has been to say no and tell people to wait … we need to build a framework that is appropriate for this industry. ”
Read more: Blockchain company LBRY tries to unite the sector against the SEC; Critics Allege a ‘Cryptocurrency Suppression Program’ Cryptocurrencies and blockchain-related financial services companies are regulated by a number of federal and state agencies, including the SEC, the Commodity Futures Trading Commission, the Department of the The US Treasury and Federal Reserve, among others, and the industry have long complained that this complicated structure makes it difficult to understand the rules of the road. Peirce said he hopes Congress will step in to “draw some lines” and “urge us to come together as regulators and find out what goes down and where,” so that entrepreneurs have a clear understanding of regulatory policy regarding cryptocurrencies. He expressed optimism that Gary Gensler, who is on track to be confirmed as the next SEC chairman, will be able to use his experience as a CFTC commissioner to enable a constructive working relationship between the two capital markets regulators. Peirce also addressed the issue of the central bank’s digital currency, in light of the recent introduction of a digital yuan in China and while the Federal Reserve is studying the possibility of issuing a new blockchain-enabled digital dollar. He noted that private stablecoins, or cryptocurrencies that aim to link their value to some other asset, such as the US dollar DXY, + 0.17%, could play the same role as a government-backed digital currency, and have already proven their popularity. . Meanwhile, he argued that the decentralized nature of some cryptocurrencies is where the “real power” of the technology lies. “Part of the weakness of our financial system comes from its concentration… a more robust system can be made” by relying more on decentralized elements, such as bitcoin cryptocurrencies BTCUSD, -4.45% or ethereum ETHUSD, -7.60%. See Also: Bitcoin, Crypto Investors Will Watch Out For These 5 Questions Facing The Biden Administration For Those Investors Who Are Concerned That The US Government Will Soon Crack Down On The Use Of Cryptocurrencies On Behalf Of The investor protection or to maintain better control of the money supply, Peirce had some reassuring words. “I think we were already past that point [where governments could effectively ban crypto] because you would have to shut down the Internet, ”he said. “A government could say that it is not allowed here, but people could still do it and it would be very difficult to prevent people from doing it. It would be silly ”for a government to try, Peirce said.