TL;DR Breakdown
- Peirce warns against blowback of the SEC rule on the DeFi sector
- The new rule was based on the Exchange Act of 1934
- Gensler wants to regulate the entire crypto space
The United States of America is gradually making headway regarding the regulation of the crypto space. Although most people feel that the market might prove stubborn, the country is handling it very well. However, the United States SEC commissioner Hester Peirce has warned of the potential blowback that it could have on the decentralized finance sector. In her opinion, the SEC rule could make it hard for the country to regulate companies in the sector.
SEC based the new rule on the Exchange Act of 1934
Giving her opinion, Peirce told Bloomberg in an interview that the document that the agency released, which housed its SEC rule, could have a deeper impact on the entire crypto space. Notably, the United States SEC announced some weeks ago that it had released a document that defined what a crypto exchange should be and the activities it can carry out. The document was about 654 pages and was based majorly on the Exchange Act that was created in 1934.
Peirce was also against letting the public have their say on the SEC rule as this could mean a potential increase in regulations which could eventually affect the DeFi sector. As she is fondly called, Crypto Mom mentioned that the SEC rule contained a vast language with the chairman of the body interested in regulating the crypto space.
Gensler wants to regulate the entire crypto space
Her concern was that the document failed to define digital assets or what cryptocurrencies are but instead talked about financial systems in the sector. These financial systems provide users with trading interests and bring buyers and sellers across the sector together. The United States SEC boss, Gary Gensler, also said that the SEC could change a whole list of things in the sector, including great accessibility to the treasury market.
A previous document mentioned that the SEC had been proactive in their pursuit for regulation over the period that Gary Gensler took over up until this period. Previously, Gensler mentioned that so many DeFi projects were centralized and could attract the same SEC rule as securities. This is what Crypto Mom has been against, the SEC rule recognizing all companies in the sector as one. If this SEC rule officially gets recognized, the public would be open to having their say for 30 days.
