Being part of the SEC, the commissioner warned the public about the agency’s potential plans to impose major restrictions on crypto-focused platforms.
The US has been on the road of setting a crypto regulation framework due to uncertainties on proceeding with cryptocurrencies, and how to make them viable and transparent assets. Just recently, there have been rumors floating around the White House that the President of the United States Joe Biden will be issuing an executive order for cryptocurrency policies.
However, the full extent of the policy is still unknown, which became worrisome after SEC Commissioner Hester Peirce shared with the public that the agency will look to regulate DeFi platforms.
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Peirce has been an advocate for digital assets since early last year, because of which, as a fun fact, she was named the Crypto Mom. While she’s a part of the SEC, the commissioner had strong positions against strict crypto regulations. Based on the report by Bloomberg, she shared a piece of some worrying news regarding SEC’s proposal that threatens decentralized exchanges, stating:
"The proposal includes very expansive language, which, together with the chair’s apparent interest in regulating all things crypto, suggests that it could be used to regulate crypto platforms."
Interestingly enough, the proposal issued by the SEC shows some usage of implicit terminology which doesn’t directly address crypto-related platforms, but rather calls them "alternative trading systems" or ATSs - a term referring to venues that operate as brokers to customers assets with less regulation.
With the US showing signs of struggle in terms of crypto regulation, Russia has also been in a similar situation for the past couple of months. However, the Russian government is reportedly moving towards a consensus, with most regulatory authorities in favor of issuing a ruleset for crypto usage and management.
