SEC Cryptomom Discusses New Rule Changes And The Future Of Crypto

Hester Pierce, known as the SEC cryptomom, recently discussed a lot of things in the securities regulation industry and noted many new developments geared towards the future of cryptocurrencies. In fact, this was what earned her the moniker “Crypto Mom” in the first place.

Pierce was in the latest cryptocurrencies news when she started backdropping and updating exemptions from security offering registration as well as ongoing tug-of-war with legislators on the topic of handling crypto. The SEC crypto mom sat down with one media outlet and decided to discuss the recent changes in regulatory approach – and what to look out for in the next.

Right as the SEC announced a series of proposed changes to their classification of “accredited investor” on December 18, this was seen as a designation based on certain income and/or knowledge requirements. For all of you who don’t know, the basic concept of an accredited investor is someone who can fend for themselves when it comes to the risk associated with early-stage investments. This may involve sifting through murkier business practices as well as higher potential rewards.

While the SEC cryptomom said that she looks forward to comments on the proposed changes – which will also include accreditation on the basis of demonstrated knowledge – she also expressed broader ambitions.

“We’re not really asking the fundamental question, which is, is this even a good framework to have?” Pierce noted in the Bitcoin news today.

The attitude of the SEC cryptomom reflects the general libertarian bent of her comments on the government’s role in protecting investors, including a preference for “regulatory humility” on display at a hearing before the House Financial Service Committee in September.

“The accredited investor is just one piece that we pulled out of it. That doesn’t mean that we’re not going to do anything with the rest of it. There’s interest — at least from me — in trying to see if we can do something to try to harmonize the exemptions. That’s a big project,” the SEC cryptomom noted.

When it comes to the broader hopes for the direction of securities law and investment, the commissioner wanted to see greater acceptance of the risks inherent in investing. She said that “with liberty comes responsibility.”

“If you come in and you say ‘well Hester, I’d like to invest in a broader range of things, I’d like to have access to private offerings,” Pierce noted.