American lawyer specializing in financial market regulation and Commissioner on the Securities and Exchange Commission (SEC)— Hester Pierce, also known as the ‘crypto mom’ criticizes the US Securities and Exchange Commission (SEC). She slammed the SEC for agreeing to take $10 million disgorgements from Poloniex to settle the case. Hester Pierce questions the tenacity of the regulations on cryptocurrency.
Hester Pierce Criticizes The SEC For Focusing More On The Enforcement Action Rather Than Pronouncement
The commissioner of the United States Securities and exchange commission (SEC) criticizes the system and approach of regulation of her agency.
On Monday, 9th August 2021 the SEC news reporting web platform launched an announcement declaring the settlement disgorgement that the SEC is charging, that is, over $10 million from the crypto exchange Poloniex.
Poloniex was charged with unlawful trading of unauthorized digital assets and securities.
Also read: Poloniex Exchange Agreed To Pay $10.4 Million To Settle Cases With The SEC to know further about the case between Polniex and the SEC
The crypto exchange platform was said to be not complying with the investor protection provisions.
Hester Pierce, on the same day of publishing the report, criticized the SEC for focusing more on enforcement actions. She questioned the effectiveness and accuracy of the agency’s operation in handling cryptocurrency regulations.
She explained how the SEC slacked “during the period at issue here (mid-2017 through 2019), the Commission was moving very cautiously concerning regulated entities’ engagement with crypto assets.”
Hester Pierce later added to her argument, “Given how slow we have been in determining how regulated entities can interact with crypto, market participants may understandably be surprised to see us come onto the scene now with our enforcement guns blazing and argue that Poloniex was not registered or operating under an exemption as it should have been.”
She made a public statement where she condemned the efficacy of the SEC, she argued that even if the crypto exchange Poloniex desired to register with the regulatory watchdog as an authorized exchange platform then the procedure would cost them years. Hester Pierce said, “Sure, Poloniex could have tried to register. Had it done so, it likely would have waited . . . and waited . . . and waited some more.”
According to data from Cointelegraph, USD coin (USDC) Stablecoin issuer Circle procured Poloniex for $400 million back in 2018. In October of the next year, Circle turned out Poloniex’s trade business, offering it to a consortium of financial investors. So, the company is not in a great financial state, as we can infer.
Similar to Poloniex, the SEC has taken enforcement actions against approximately 75 companies. Last week, it took action against its first decentralized finance institution. The SEC has been settling cases with firms caught in cases of incompliance laws with a massive amount of disgorgement.
Lately, the Chief and Chairperson of the SEC — Gary Gensler announced the institution’s goals regarding the regulation of cryptocurrency. Emphasizing the enhancement of investor protection provisions.