Know to be a crypto enthusiast and advocate for friendly crypto policies in the US, Hester Pierce also called crypto Mom, believes that regulatory changes are necessary to make crypto environment in the US more competitive.
Being one of the five SEC Commissioners, crypto mom has always been an advocate of friendly policies for the crypto space. She believes the US needs to catch up in the crypto realm, otherwise lose its competitive edge to other jurisdictions around the world.
In an interview, Pierce said regulations that are operational in the US now are stifling to home-grown innovation in the crypto space. 1946 Howey Test security determinant is also a major concern for her.
“I think it’s making it impossible for a project to get started without falling into that Howey definition,” she said.
Crypto mom three years safe harbor period
Reportedly, towards easing regulation hurdle for crypto firms, crypto mom proposed a safe harbor period for crypto projects. The safe harbor period enables developers to operate without regulation for three years before being subject to existing securities regulations.
It is meant to allow crypto projects to fundraise through the sale of blockchain-based tokens as they work towards becoming “sufficiently decentralized.” Many stakeholders lauded the safe harbor proposal by crypto mom in America’s crypto space like the Blockchain Association, Binance US CEO, among others.
Handling ICO’s, DeFi crackdown in the US
Currently, crypto mom is in the process of securing her seat for a second term in office as one of the regulators five commissioners.
During her first term in office, most of what the regulator did was crackdown on crypto firms over ICO’s. Telegram, Engima, Dropil, among others, suffered this crackdown.
The latest firm facing a similar crackdown is Abra, based in California that enables users to trade tokenized versions of stocks and foreign currencies.
Crypto mom, however, has said she could be approached and ready to work with firms to help them understand the law and potentially pivot, so their project remains in compliance.