US Exchange Authority: Crypto Regulations Must Be Clear and Reasonable

Liputan6.com, Jakarta United States Securities and Exchange Commission (SEC) Commissioner Hester Peirce, known as the “Crypto Mom” for her support of the cryptocurrency industry, has called for a clear and reasonable regulatory framework to encourage innovation and provide clarity for crypto developers.

Reporting from Yahoo FinanceFriday (14/6/2024), speaking at the ETHDenver conference, Peirce highlighted the challenges the industry is facing due to regulatory ambiguity, which he said is driving crypto companies and trading activities overseas.

His comments come amid criticism from industry leaders of the agency's regulatory-by-enforcement approach and a push by the U.S. Financial Services Committee to limit SEC oversight of the crypto industry.

The SEC's approach was also challenged by a Government Accountability Office report, which raised concerns about the SEC's authority and the imposition of Staff Accounting Bill 121 without proper consultation.

The SEC is known to be very tough on the crypto industry, especially SEC chairman Gary Gensler. Crypto law enforcement by the SEC skyrocketed in 2023, with a more than 50% increase in crypto-related enforcement actions compared to 2022, according to a new report by Cornerstone Research.

Securities regulators continue to view cryptocurrency law enforcement as a top priority, bringing 46 enforcement actions against various digital asset market participants.

The report outlines that of the 46 enforcement actions, the SEC filed 26 litigation in US federal courts and 20 administrative proceedings in 2023.

There were more than three times as many administrative proceedings as there were last year, and the number of litigations increased slightly. The SEC imposed a monetary fine of USD 281 million or the equivalent of IDR 4.1 trillion (assuming an exchange rate of IDR 16,352 per US dollar) for the settlement reached.

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