The SEC’s New Rule List: A Quick Dive into Controversy

Commissioner Hester Peirce, affectionately dubbed the “Crypto Mom,” isn’t holding back. The SEC’s latest Spring 2022 Regulatory Agenda has her scratching her head in disbelief. She views the new rules as a whirlwind of hastily made decisions lacking depth and clarity, especially when it comes to cryptocurrency, which seems to have been left out entirely from the conversation.

What’s Missing? A Crypto Perspective

Peirce’s keen eye caught the absence of any direct mention of crypto in the SEC’s rule list. However, she raises an eyebrow at the Amendments to Exchange Act Rule 3b-16, suggesting it could affect crypto protocols and platforms through what she cleverly calls an “unmarked backdoor.” Sounds sneaky, right? It’s like trying to sneak vegetables into a dessert – questionable intentions abound!

Areas Crying Out for Clarity

In her biting critique, Peirce identified four significant areas where the crypto realm desperately needs guidance:

• Definition of Securities: Is it a bird? Is it a plane? No, it’s a crypto security? Clear definitions would help avoid mass confusion.
• Custody Issues: Who’s holding your digital assets? Let’s get some clarity before they disappear like socks in a dryer.
• Staff Accounting Bulletin 121: This controversial bulletin has raised eyebrows and questions about its implications for crypto accounting.
• Regulatory Guidance: A little guidance would go a long way, leading the crypto tide instead of paddling upstream.

The SEC’s Agenda: Hitting the Wrong Targets?

Peirce didn’t stop there. She labeled the SEC’s agenda as misguided, implying that the agency is focused on “hot-button matters outside our remit,” like diversity initiatives and climate change. Sure, those are important, but it’s like throwing a birthday party when you forgot to buy the cake – everyone notices the missing piece!

A Dangerous Current Ahead

In her colorful metaphor, Peirce described the rapid-fire implementation of these rules as akin to a “regulatory rip current.” These fast-moving currents could sweep investors away, leading to chaos in the capital markets. And let’s be real: no one wants to experience a tidal wave of regulation that leaves seasoned swimmers gasping for air.

Peirce: The Dissenting Voice

As one of the rare dissenters on the SEC board, particularly regarding crypto, Peirce’s critiques shine a light on the need for thoughtful regulation. She urges the SEC to flip the script from enforcement-first approaches to one that fosters innovation and provides much-needed guidance to the burgeoning crypto industry.