2022-6-22 22:41 |
US Securities and Exchange Commission (SEC) commissioner Hester Peirce says she is against what she sees as bailouts being extended to crypto companies feeling the hit of the current bear market.
In an exclusive interview with Forbes (published on Tuesday), Peirce notes that this was her view, especially any such bailouts for companies that clearly do not apply risk management principles that are core to any market.
The commissioner has over the years been a staunch supporter of regulatory clarity for the crypto market, often calling for more to be done to support the burgeoning industry.
However, in her latest remarks amid the crypto winter, she says she does not see why a company that, due to its bad practices, sank into an over-leveraged hole needs to be helped out of that hole.
She said the SEC has no such mandate from Congress, and she personally wouldn’t support it. She told Forbes:
Crypto does not have a bailout mechanism. And that’s been perceived as one of the strengths of that marketplace. I don’t want to come in and say that we’re going to try to figure out a way to bail you out if we don’t have the authority to do it. But even if we did, I would not want to use that authority, we really need to let these things play out.”
Crypto winter helps to highlight strong projectsAccording to Forbes, Peirce also talked about what benefits might come out of a bear market such as this. In her opinion, the tough market conditions, with prices falling massively, is when the community can gauge innovative, valuable projects that will last.
On the other hand, it also offers an opportunity for weak and poorly built projects to disappear.
The crypto winter, as the crypto sector calls the extended downtrend, is also one where market players as well as regulators, learn how the market functions in such conditions.
It is helpful for us to see the points of connection. It’s a moment, not only for market participants to learn, but it’s also for regulators to learn, so that we can have a better sense of how the market operates.”
Peirce also commented on the overall regulation of crypto, noting that she is optimistic about the general take on crypto regulation on Capitol Hill. According to her, a “regulatory framework that offers clarity,” is what the market needs.
The post SEC Commissioner Hester Peirce is against crypto bailouts: Report appeared first on Invezz.
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