SEC Commissioner Proposes Radical Changes for Cryptocurrencies: Impact on Bitcoin (BTC) and Ethereum (ETH)

  • Hester Peirce, a crypto-friendly SEC member, has proposed a new regulatory framework for the crypto market.
  • Peirce suggests a “cross-border sandbox” for crypto firms in the US and the UK to operate under regulatory supervision for two years.
  • Peirce’s proposal responds to the Bank of England and Financial Conduct Authority’s consultation on creating a “Digital Securities Sandbox” (DSS).

Discover the latest proposal by SEC’s Hester Peirce for a cross-border sandbox aimed at fostering innovation in the crypto market.

Hester Peirce’s Proposal for a Cross-Border Sandbox

Hester Peirce, a commissioner at the US Securities and Exchange Commission (SEC), has put forward a proposal for a “cross-border sandbox” to regulate crypto firms. This sandbox would allow firms in both the US and the UK to engage in specific activities under regulatory oversight for a two-year period. The proposal is a response to the Bank of England and Financial Conduct Authority’s consultation paper on establishing a “Digital Securities Sandbox” (DSS).

Details of the Proposal

In her statement on Wednesday, Peirce emphasized the need for a sandbox that would fulfill the promises of the DSS and serve investors, market participants, and regulators across jurisdictions. Known as the “crypto mom” for her pro-crypto stance, Peirce has previously suggested solutions for regulating the crypto industry. In 2020, she proposed a three-year “safe harbor period” allowing innovators to launch blockchain-based digital projects without registering under certain federal securities laws.

Implementation and Oversight

Under the proposed “micro innovation sandbox,” the SEC would publish a list of “eligible activities” after public comments. According to Peirce, the agency would also set “monetary caps.” The aim of these caps is to ensure that participants can gauge market reactions to their products or services and identify areas for improvement without compromising investor protection or market integrity. Firms participating in the sandbox would also be subject to anti-fraud provisions.

Conclusion

Firms would be allowed to participate in the sandbox for two years, provided they do not exceed “customer limitations” or monetary caps. During this period, firms would work with the Commission and its staff to obtain a no-action letter or exemption order covering their activities. This proposal by Hester Peirce aims to create a balanced regulatory environment that fosters innovation while ensuring investor protection and market integrity.

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news.
spot_imgspot_imgspot_imgspot_img

Latest News

Bitcoin Miners Face Revenue Challenges Amid Declining Network Activity and NFT Interest

Bitcoin network activity is significantly influencing miners'...

Solana and Altcoins Poised for Massive 2024 Rally, Predict Analysts

Altcoins are positioned for a significant uptrend, as...

Bitcoin Outshines Ethereum in Q2 2024 ROI Despite Strong S&P 500 Performance

The leading cryptocurrencies, Bitcoin and Ethereum, have...

Bitcoin Faces Critical Resistance at $64,515: Can BTC Reclaim its Ground?

Bitcoin’s price momentum has shifted as the...

XRP Price Eyes Stability as Whales Transfer 51M Tokens from Binance

XRP market sees heightened interest...
spot_imgspot_imgspot_imgspot_img

PRO Analysis

Comprehensive Guide to MDX Coin: Features, Usage, and Price Analysis

MDEX platform operates across various blockchain networks...

Bitcoin and Altcoin Market Overview: June 22nd Analysis

Crypto market insights: An overview for June...

Dogecoin ($DOGE) vs Shiba Inu ($SHIB): 2024 Market Analysis and Investment Outlook

The competition between Dogecoin ($DOGE)...
Jocelyn Blake
Jocelyn Blakehttps://en.coinotag.com/
Jocelyn Blake is a 29-year-old writer with a particular interest in NFTs (Non-Fungible Tokens). With a love for exploring the latest trends in the cryptocurrency space, Jocelyn provides valuable insights on the world of NFTs.
spot_imgspot_imgspot_imgspot_img

Bitcoin Miners Face Revenue Challenges Amid Declining Network Activity and NFT Interest

Bitcoin network activity is significantly influencing miners' earnings. There has been a notable decline in both overall network activity and interest...

Solana and Altcoins Poised for Massive 2024 Rally, Predict Analysts

Altcoins are positioned for a significant uptrend, as indicated by historical patterns and optimistic market signals predicting a reverse in 2024. Market sentiment...

Bitcoin Outshines Ethereum in Q2 2024 ROI Despite Strong S&P 500 Performance

The leading cryptocurrencies, Bitcoin and Ethereum, have shown exceptional returns on investment (ROI) from January to mid-June, displaying close performance parity. ...