SEC Commissioner Hester Peirce is speaking out against the agency’s lack of predictability, citing recent enforcement actions against blockchain-based companies Library and ShapeShift as examples of regulatory ambiguity. In a speech, Peirce expressed her disappointment with what she sees as arbitrary decisions by the SEC.
The SEC filed charges against ShapeShift in March, alleging that the platform traded crypto assets as securities. ShapeShift agreed to pay a $275,000 penalty to settle the charges. Peirce believes that ShapeShift’s legal troubles stem from uncertainties in how the SEC classifies crypto assets as securities.
Similarly, the SEC filed a lawsuit against Library in 2021, accusing the company of selling unregistered securities. A judge ruled in favor of the regulator, leading to significant consequences for Library. Peirce argues that these cases highlight the need for a more predictable regulatory framework to support innovation and investment in the crypto space.
Peirce emphasizes the importance of rules that keep pace with market changes while providing clarity and predictability for entrepreneurs. She believes that the SEC should engage in public discussions before making significant regulatory changes to ensure that stakeholders have a voice in the process.
Overall, Peirce’s comments underscore the challenges faced by companies operating in the crypto space and the need for regulatory clarity to foster a vibrant entrepreneurial culture. Investors and entrepreneurs alike will be watching closely to see how the SEC responds to Peirce’s criticisms and whether any changes are made to address the issues raised.
