Hester Peirce Does Not Support Crypto Bailouts


Hester ‘crypto mom’ Peirce has shared her views on crypto bailouts, stating that she does not support crypto company bailouts, and that it is better to “let these things play out.”

The SEC commissioner, Hester Peirce has been vocal in her support of the crypto industry, recently sharing her conviction that as regulators the SEC needs to “be willing to engage with the innovators”. As an advocate of innovation in the markets, the pro-crypto commissioner has nonetheless made it clear that she does not support bailouts for companies that mismanaged risk.

Peirce commented on the way in which the crypto crash will separate companies that have strong foundations, and those that have longevity.

“When things are a bit harder in the market, you discover who’s actually building something that might last for the long, longer term and what is going to pass away,” she said.

Peirce added:

“Crypto does not have a bailout mechanism […] 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, I would not want to use that authority, we really need to let these things play out.”

The recent crypto downturn, which resulted in the depegging of the Terra Luna stablecoin, has led to a greater demand for regulation in the space. Peirce was interviewed during the DC Blockchain Summit last month, where she stated that congress needs to clarify the roles that the SEC and the CFTC have when it comes to crypto. She maintained that innovators should “experiment with different models”, but that this should be done “within regulatory guardrails”.

Despite widespread market liquidations, Pierce maintains that the crypto winter will provide  an opportunity for the sector to grow, noting:

“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.”

Source: https://cryptodaily.co.uk


Please enter your comment!
Please enter your name here