Commissioner for the U.S. SEC Hester Peirce, more typically understand in the industry as Crypto Mom offered a speech for the Texas Blockchain Summit. Therein, she talked about some statements from the SEC Chair Gary Gensler comparing Bitcoin and cryptocurrencies with the “Wild West”.
If government wants to bring law to crypto, it ought to act lawfully: https://t.co/bFbwgDGgkp
—– Hester Peirce (@HesterPeirce) October 12, 2021
Peirce welcomes the term utilized by Gensler and confessed that the “Wild West” does make reference to a “place we picture to have actually been lawless”, but she was able to provide a various angle.
Related Reading|The SEC Will Not Ban Crypto, That Would Be Up To Congress, Says Gary Gensler
The Commissioner took the metaphor used by Gensler to explain how crypto and the “Wild West” are comparable because the people and communities developed around these locations want to “develop a new future in a more appealing place”.
Therefore, she discussed a “way forward in crypto guideline” driven by those that, like in the old days, wish to escape from “stagnant societies”. The Commissioner stated:
The Western frontier was a location for the daring, the rough around the edges, the idealists, the free-thinkers, and the restless.
As that place of the past, the crypto industry is one for the daring and idealists. It also currently has some of the severe and difficulties experienced by those communities seeking to produce a brand-new world.
Moreover, the Crypto Mom offered a description of the Wild West as somewhere that permits its people to discover order and company beyond the reach of the general public sector. Peirce stated:
The crypto frontier, like the Wild West, appears pretty wild at first look: house to lots of codeslingers and speculators and some hucksters too, this new West likewise has its inter- and intra-protocol battles, relationships forged through shared troubles and successes, colorful personalities, enthusiasms, dreams, difficulties, spectacular failures, and amazing victories.
How Crypto Monitored Itself, Communities Take Control
Because sense, the Commissioner explain an image that compared cryptocurrencies and their market not as the SEC Chair and others in the U.S. federal government attempt to imagine it. Rather, Peirce described it as a sector that has actually can developing its own norms.
Related Reading|Why Bitcoin And Crypto Will Prevail Over The SEC, Ex-Goldman Sachs Breaks It Down
After, when wealth was created, federal governments decided to get involved. The Commissioner added the following:
Because crypto is constructed on code, the code itself acts as a guv of conduct. But crypto is built on individuals too, and these individuals hold each other liable not only through unchecked public discourse, however through utilizing or not using a protocol.
The Crypto understood that in the market, “decentralized neighborhoods” and other agents intervene to keep developers and projects in check. This makes up a kind of self-regulation and dismisses those alleging that crypto is inclined to “lawlessness”, as Peirce stated.
The Crypto Mom then went on to question the legal clarity around cryptocurrencies and the market. The SEC’s position seems to be that there is clearness around these assets, however as the action taken versus some jobs has shown, this has proven to be more made complex in practice. Peirce stated:
(…) if the SEC can not quickly articulate an undisputable legal theory for why particular possessions are securities, is the line as clear as the SEC keeps it is? The ambiguity ultimately serves us well because it effectively forces any actor with any connection to digital assets into our regulative jurisdiction.
At the time of composing, the crypto market has resumed its bullish momentum and is approaching pre-crash highs with an overall market sitting at $2.36 trillion.
Associated Reading|SEC Is Too “Short-Staffed” To Regulate Crypto Properly, Chairman Gary Gensler