The US Securities and Exchange Commission (SEC) is in a legal battle with Ripple (XRP)
With more and more private and institutional crypto investors, Hester Peirce believes the SEC has a duty to ensure clear regulation. At this point, one can only speculate about the stance of SEC Chairman-designate Gensler.
SEC Commissioner Hester Peirce gave a highly revealing interview to the Reuters news agency. Naturally, the topic of Bitcoin Revival cryptocurrencies played a central role in it, as Peirce is considered an expert in the field. She had already commented several times on the lack of regulations and the need for action in her opinion.
The subreddit of Wall Street Bets and the associated turbulence of the GameStop share were also mentioned. Pierce does not yet consider political consequences in this context to be appropriate. But the SEC commissioner is in favour of a „new generation of investors“ now being able to participate in the market.
A broad range of market participants would, in her opinion, also help to improve price formation. However, the new investors should also be aware of the risks and have a basic attitude that is at the same time „enlightened and sceptical“. However, due to the increasing interest in cryptocurrencies also on the part of institutional investors, Pierce sees the legislator in the duty to create uniform rules.
It’s not just that there have been calls for clarity for some time and that a new administration offers the chance to take a fresh look at the matter. But it is also a moment when others see the market through different eyes.
The next SEC boss is Gary Gensler
Even though SEC Commissioner Peirce does not explicitly mention the names, it should be reasonably clear that she is alluding to Tesla’s investment here. She may also have had Paypal’s crypto adaptation in mind. Recently, the credit card provider MasterCard also announced that it would open its network to cryptocurrencies.
The change of government in the United States is fuelling both hopes and fears in the crypto community. One hot topic for several weeks has been the dispute between the US Securities and Exchange Commission (SEC) and Ripple. The accusation is that Ripple is a security that is not sufficiently labelled as such. US President Biden brought Gary Gensler into the conversation as the future head of the SEC. As a professor at the MIT Sloan School of Management, he is admittedly considered a blockchain expert. However, his stance on cryptocurrencies and their regulation is unclear and partly relies on outdated sources.
Most recently, Peirce had held out the prospect of a Bitcoin ETP on the American stock exchange in the coming years. Application procedures are currently still underway there, among others by Bitwise.