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SEC Commissioner Hester Peirce Calls Out Regulator’s ‘Imprecise Legal Reasoning’

SEC Commissioner Hester Peirce, known as 'Crypto mom', opposed the SEC's $1.7 million fine against BarnBridge DAO.
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SEC Commissioner Hester Peirce Calls Out Regulator’s ‘Imprecise Legal Reasoning’

SEC Commissioner Hester Peirce, affectionately known as ‘Crypto mom’, recently opposed the $1.7 million fine levied by the SEC against BarnBridge DAO.

The watchdog imposed this fine on the decentralized autonomous organization and its founders on Friday for not registering their SMART Yield bond offerings, a type of structured crypto asset security.

Also Read: BarnBridge DAO Settles with SEC Over Unregistered Crypto Asset Offering

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‘Crypto mom’ voted against enforcement action

Peirce criticized the SEC’s decision, highlighting its impact on the cryptocurrency sector in the United States. She said on X, “Although I did not write a dissent (yet?), I voted against the action.”

This stance from Peirce has led some crypto enthusiasts on Twitter to support her as a potential future chairperson of the SEC. Peirce also underlined, “It’s another example of the SEC’s imprecise legal reasoning in crypto cases, which only adds to the uncertainty for crypto projects in the US.”

Her critical view of the SEC’s approach to cryptocurrency regulation is not new. She has pointed out the shortcomings of the SEC’s enforcement actions in the past, advocating for a more consistent regulatory framework for cryptocurrencies.

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Gary Gensler argues non-compliance

Peirce, in her November appearance on Bloomberg TV, emphasized that regulatory clarity for crypto should not solely rely on litigation. “I will say that litigation is not the most effective way to carry out regulations,” she remarked. She suggested that the SEC has various tools at its disposal besides enforcement actions to regulate the crypto industry effectively.

In a recent Bloomberg podcast, Peirce also commented on the delayed approval of Bitcoin ETFs by the SEC. She noted, “I thought that we should have approved one of these things over five years ago. So the fact that we haven’t done it yet is a mystery to me.”

Peirce has expressed longstanding support for more progressive regulatory measures in the crypto space, but the implementation has been somewhat slow in the US.

SEC Chairman Gary Gensler recently highlighted the significant issue of non-compliance within the cryptocurrency sector. He pointed out that this trend erodes public trust, especially when many affected individuals are left to seek recourse in bankruptcy courts.

“This can make it hard for the good faith actors to compete,” Gensler added.

Also read: SEC’s Hester Peirce Urges Better Crypto Regulation Efficiency

 

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Shraddha Sharma

Shraddha's professional journey spans over five years, during which she worked as a financial journalist, covering business, markets, and cryptocurrencies. As a reporter, she has placed particular emphasis to learn about the market interaction with emerging technologies.

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Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
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