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Saturday, July 12, 2025

Esther Pierce called on the US Congress to clarify the regulation of cryptocurrencies

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The Commissioner of the US Securities and Exchange Commission (SEC) called on the US Parliament to take an active part in the development of a regulatory framework for the control of digital assets.

Hester Peirce buoyed the industry by stating that the bankruptcies of many crypto companies and crypto lenders are not indicative of the failure of specific digital assets. The beauty of the cryptocurrency market, the commissioner believes, lies in the freedom of choice: if a person does not like bitcoin, he can simply not buy it. People should independently analyze the risks and benefits of assets, and rely on their own opinion when making a decision on their purchase.

Esther Pierce is convinced that the role of the SEC is not just to tell people “This is good, this is bad.” Instead, however, regulators are trying to take on as much power as possible to oversee the industry. At the same time, each department treats cryptocurrencies differently. The SEC believes that digital assets should be classified as securities, and the US Commodity Futures Trading Commission (CFTC) considers crypto assets to be commodities. 

Earlier, CFTC Chairman Rostin Behnam proposed that both departments join forces and decide which crypto assets can be covered by their powers.

Commissioner Pierce believes that the US Congress could clarify this issue. The SEC member acknowledges that lawmakers have done a lot of work, but it is still difficult for Congress to develop a specific structure for regulating cryptocurrencies. However, interaction with parliamentarians could significantly accelerate the development of cryptocurrency legislation, Pierce is sure.

Last year, Ripple CEO Brad Garlinghouse expressed a similar sentiment that Congress could clarify the rules that crypto asset companies must follow. Garlinghouse is convinced that only Congress can soften the SEC’s approach to cryptocurrency issuers by hinting at Ripple’s litigation with the regulator.

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Disclaimer

Crypto investments come with high risk and you should always exercise caution when investing in any crypto asset. Investing in crypto carries a high level of risk, and may not be suitable for all investors. Any investment decisions made by you are made at your own risk and we are not responsible for any losses that may occur. Before investing, we recommend you consult a financial advisor to understand the risks and rewards associated with investing in crypto.

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