Financial regulators are attempting to establish stricter policies to regulate the crypto market, however, a senior regulator in the United States has spoken against forming strict policies with a warning that it runs the risks of discouraging investors and might throw the market off-balance.
Hester Pierce, one of the Republicans among five commissioners working at the Securities and Exchange Commission, voiced her concern to the Financial Times regarding the encouragement of numerous regulators in the United States, and how they are being pushed to play an active role in the crypto market.
Her statements were in direct contradiction to the top management of the Securities and Exchange Commission, especially the chairman of SEC Gary Gensler, who has pushed the agencies to put more effort into bringing the rapidly growing crypto market in line among other financial assets.
Cryptocurrency has become a concern for US regulators due to the volatility of most digital assets that are commonly traded. Bitcoin, the leading cryptocurrency, has soared over $60k earlier this year before crashing below $33k.
According to the Treasury Department, it would take $10k worth of cryptocurrency or more in order to be reported to the tax authorities in the US. Due to this announcement, senior officials from the leading federal bank regulators have started to search for the best way to regulate the market.
The chairman of SEC Gary Gensler has called the authorities to enforce stricter regulatory policies to improve investor protection. However, Peirce commented on this action stating Gensler will face a push back from his own agency if he continues to enforce the policies.
Peirce argued that policies will make it harder to execute peer-to-peer truncations and that cryptocurrency can effectively self-regulate itself. She added her concerns applied to stock trading platforms as well.
