June 15, 2021

“SEC can do Better on Clarity on Regulations” Says SEC Commissioner Hester Pierce

2 min read

RIpple Lawsuit

In a recent interview SEC commissioner aka Crypto Mom Hester Pierce stated SEC can do better on clarity of guidelines as enforcement must not be the only way to provide guidance. It ought to be kept in mind that the hearing for the lawsuit is due in virtual court on Feb. 22nd, 2020 losing which XRP might be un-tradable at many exchanges.

Hester Pierce Aka Crypto Mom Suggests More Clarity is Required on Regulations Based on the interview Hester Pierce decreased to discuss upcoming Ripple Lawsuit hearing on 22nd February and said that quote,

“In enforcement actions, it’s often a consentaneous vote, but it’s in some cases not– once that vote has been taken, the lawsuits moves forward,”

A notable point brought up in the interview was that both bodies FinCEN and SEC are in misalignment with respect to XRP being called a security. In 2015, Financial Crimes Enforcement network [FinCEN] called XRP to be currency while SEC is now strictly opposite to that meaning.

On questions relating to whether XRP is a security or not, Pierce stated quote,

“I believe that’s not just an issue with regard to digital possessions, it’s really a more comprehensive issue because we have this really open-ended category called an ‘investment contract. “

Earlier SEC in a statement called XRP a security and submitted a $1.3 Billion lawsuit against Ripple and its executives. The news was followed by delisting of cryptocurrency XRP across significant exchanges leading to more than 90% decrease in XRP price.

In past SEC has done something about it versus crypto tasks like Kik’s KIN Token ICO and telegram’s TON token.

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