Can SEC’s New CEO, Hester Peirce, Cleanse The Crypto Mess?

Throughout January, a lot of institutional platforms criticized the SEC on their crypto strategy. The former CFTC chairperson included. Meanwhile, the SEC has put their legal filings with Binance and others on pause also. In such a situation, Hester Peirce arrives and promises to compensate for the mess that SEC’s crypto policy has created.  

She sets up a quick-action task force. But legal experts say that the court would be badly involved in this mess cleanup.  

Shuffling and addition of crypto regulations  

The nontransparent regulations are one of the prime reasons why investor sentiment regarding the memecoin and altcoins market is so turbulent and volatile. Gary Gensler, the formal chairperson, enforced some policies in haste. Certainly, those did not work well. All they did was force down some projects and spit ill-framed lawsuits on some others.  

But things took a new turn on Jan 21, as “Crypto Mom,” Peirce becomes the new chairperson. The formation of the task force shows that she is a woman with a vision.  

Another outspoken formal chairperson, Mark Uyeda, is behind the Peirce appointment. But traders are only hooked on one thing- will this change work and pump new life into the cryptocurrency market? 

It’s too early to comment on that. But the preparedness of the task force seems to be. Within 2 days, the task force had successfully averted the Staff Accounting Bulletin 121. It was one of the basic regulations that made it difficult for any financial institution to easily transact Crypto assets.  

As the law is repealed now, banks can easily stock, share, and allow more free transactions without much regulatory loops to people willing to deal in crypto. The second significant milestone of Peirce’s short journey so far is the checklist she released this weekend. It highlights all the main issues in the Crypto world that the SEC couldn’t solve to date. In addition, she promises that she has a resolve for each of those issues.  

She is willing to help investors and give them more protection. However, market manipulators, scammers, and foul players will equally face enforcement. But genuine institutional traders will enjoy the flexibility that the SEC 2.0 offers now.