At the DC Blockchain Summit in Washington D.C., SEC Commissioner Hester Pierce expressed hope that after the collapse of the TerraUSD (UST) algorithmic stackcoin and Terra (LUNA) subsidiary, any upcoming regulation would not hamper the crypto sector.
It is likely that regulation will take place more quickly because of the events of recent weeks. It is true that bills on stablcoin were already under consideration, so it is quite possible that things will go faster.
I think what we have to do is keep the ability for people to experiment with different models and do it in a way that fits within the regulatory framework,” Pearce said.
Called a cryptomaniac, the SEC commissioner hopes that Congress will develop guidelines for both the SEC and the Commodity Futures Trading Commission (CFTC).
We have a lot of work to do, even within our existing authorities, because traditional financial institutions want to get involved in the crypto sector and need our guidance. They need regulatory clarity from us to do that.
Pearce said she would like to see a balance between innovation and regulation, with both sides meeting and communicating in good faith. Prior to that, she said, the government’s efforts in this regard have been lacking.
We talk a lot about responsible innovation, but I think along with that we have to talk about responsible regulation, which means that as regulators we have to be willing to engage with innovators…
That will require work on our part, and we have to be willing to do it, which I haven’t seen yet. Hopefully, in the next phase, we will sit down and think realistically about the potential of this technology, the challenges and opportunities from a regulatory perspective as well as from an innovation perspective.