A Financial Regulator in The US Says That Strictly Regulating Cryptocurrencies Can Discourage Investors
A financial regulator in the United States has mentioned that cryptocurrency should not be strictly regulated. That is because doing so can keep most of the potential investors Way, while discouraging the current investors.
That financial regulator is Hester Peirce, who is one of the only two republicans in the 5 commissioners in SEC. The regulator further says that the role of other United States based regulators in the 1.5 trillion dollar cryptocurrency market is worrisome.
These parks came at a point when other regulators are trying to regulate the crypto marketplace just like every other asset.
The regulator further said that the typical mindset of a regulating body is always trying to regulate new assets just like the ones they are already regulating. This might not be good for innovation in the crypto market.
Peirce has already served in some think tanks and has worked as a lawyer as well. She was appointed in SEC in 2018 by the former president Donald Trump.
Trump himself has contrasting views with Peirce. He says that the crypto market, and bitcoin in particular should be strictly regulated. He also said in the interview that he wants the US dollar to be the currency of the world.
Various Changes Are Being Pushed
The worries about crypto market shown by the US regulators is due to the recent wild swings in the price of cryptocurrencies including, but not limited to bitcoin.
The treasury department has also recently said that cryptocurrency related transfers over $10,000 would have to be reported to the Tax departments. Banks controlling crypto transactions have also started planning how they can regulate the market in a better way. The FED has also joined other departments to set specific merits for cryptocurrencies. All of this is being done to save the investors, and to introduce more stability in the crypto market. There might be a change in crypto investing rules for Americans.
Various lawmakers are trying to push changes in rules regarding crypto, and they are saying that the crypto marketplace should be regulated just like Nasdaq and NY Stock Exchange. However, there are still many gaps in laws regarding cryptocurrencies, and it is yet to be determined which department should regulate the market.
Peirce says that various departments might face resistance from within themselves as they try to introduce changes to the cryptocurrency market. She also mentioned that government regulation shouldn’t affect peer to peer transfers, and that self regulation in the crypto world is still great and self-sufficient.
She has also shown concerns that regain Stock trading applications like Robinho might also face struck regulations after this.
The officials seem worried about the “Game like” appearance of these application with leader boards and other things. However, Peirce says that is a good feature to encourage investors to invest their money in stocks. She says that the users should be educated to use such platforms carefully instead of imposing regulations.