A senior leader of the US Securities and Exchange Commission (SEC) slammed her peers’ attempts to crack down on digital currencies, showing a split at the top of the agency on how to deal with the fast-developing digital currency sector.
One of the regulator’s five commissioners, Hester Peirce, talked to the Financial Times that she was “worried” about attempts by some US regulatory authorities to more actively monitor the digital currency, pitting her against SEC chair Gary Gensler, who favors aligning digital currency regulations with those for more traditional assets.
Peirce, who served as a researcher at the free-market research institute Mercatus Center until being nominated to the SEC by Donald Trump in 2018, added, “I am not sure that’s going to be great for innovation”.
Rather, Peirce believes that market self-regulation may be “quite successful” and that control doesn’t have to exist at the federal level.
According to the commissioner’s statements, Gensler may face internal obstacles in his attempt to rein in the digital currency market, which sprang to popularity at the start of 2021 as an influx of investor funds caused the value of initial cryptocurrency Bitcoin to soar to historic levels, carrying the world with it.
Officials, on the other hand, are particularly concerned about the digital asset sector because of its extreme volatility and fraudsters’ utilization of it as an untraceable payment mechanism.
Bitcoin was selling at US$34,179 in early London trading on Wednesday, up 3.5 percent in the previous 24 hours, giving it a market capitalization of US$640 billion.