Bankless 163 - What SEC Commissioner Hester Peirce Thinks About the SEC
Mar 20, 2023
Hester Peirce, SEC Commissioner since 2018, is known for her principled stance on crypto regulations. In this conversation, she discusses the current regulatory challenges facing the crypto industry, advocating for a first principles approach. Peirce emphasizes the importance of transparency and dialogue between regulators and the crypto community. She also shares her insights on defining securities, the need for accountability in the industry, and the potential for constructive engagement to foster innovation while protecting investors.
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SEC's Role: Leveling the Playing Field
- The SEC aims to level the playing field by addressing information asymmetries in capital raising.
- It ensures investors receive sufficient information from companies raising money, promoting transparency.
Decentralization vs. SEC's Role
- Decentralized systems inherently reduce information asymmetry due to their open and transparent nature.
- The SEC's focus lies on centralized entities where information asymmetry and principal-agent problems are more prevalent.
SEC Regulation and Crypto's Future
- Centralized crypto entities might benefit from SEC regulation, providing investor protection and market stability.
- However, applying traditional regulations to decentralized aspects could stifle innovation and growth.