Crypto Mom Says SEC Should Have Admitted Earlier That Crypto Assets Aren’t Securities Themselves
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SEC Commissioner Hester Peirce, popularly referred to as Crypto Mom, addresses the regulatory ambiguity surrounding crypto classification during a recent congressional hearing. Yesterday’s hearing saw five SEC commissioners, Gary Gensler, Hester Peirce, James Lizarraga, Mark Uyeda, and Caroline Crenshaw, testify before the U.S. House Financial Services Committee. As reported earlier, this landmark event marked the first time since 2019 that all SEC commissioners testified before Congress. Peirce Criticizes SEC Over Its Imprecise Language During the hearing, Peirce criticized the SEC for using imprecise language to create confusion about whether a token itself is a security or part of an investment contract. According to Crypto Mom, the agency’s continuous use of imprecise language has wrongly suggested that the token itself is a security. She emphasized that this lack of clarity affects how the token can be traded in the secondary market and who can list it. Notably, Crypto Mom slammed the commission for neglecting its duty by not being precise with industry stakeholders. SEC Should Have Admitted Long Ago That Crypto Tokens Aren’t Securities Interestingly, Peirce referenced the SEC’s comment in the Binance lawsuit, in which the agency apologized for the confusion it created through its use of the term “crypto asset securities.” Earlier this month, the SEC admitted in a footnote that the term does not imply that crypto assets are securities themselves but a shorthand for the sets of contracts and expectations surrounding the distribution of the token. Reacting to the comment, Peirce said the SEC should have admitted earlier that the token itself is not a security. JUST IN: 🇺🇸 SEC Commissioner Hester Peirce says the SEC “should have admitted long ago” that crypto tokens are not securities. pic.twitter.com/T8r5mOpdIN — Radar🚨 (@RadarHits) September 24, 2024 SEC Treats Digital Assets Differently from Physical Ones Rep. William Timmons questioned Peirce…
Filed under: News - @ September 25, 2024 7:25 am