Giant news! US Securities and Exchange Commissioner, Hester Peirce, talks crypto regulation


hello folks you have reached the cryptocurrency portal and today I have some exciting news I think because we always talk about regulations and regulatory clarity on this channel and it looks like we have some glimmer of hope that’s coming out from the SEC so let’s explore this together it says SEC crypto safe harbor could be the most groundbreaking development for the US markets as finance exec so the US Securities and Exchange Commission er says from the SEC Hester Pearce she is presenting a new proposal on how to regulate crypto currencies so first off who is Hester Pearce so I went to the security Exchange Commission and here’s her biography just so we know her background it says Commissioner Hester Pearce she was appointed by President Donald Trump to this sec and she was sworn in on January 11th 2018 so just a little over two years on the Commission and then prior to joining the SEC Commissioner Pearce conducted research on the regulation of financial markets at the Mercatus Center at George Mason University and she was a senior counsel on the United States Senate Committee on Banking Housing and Urban Affairs where she advised ranking member Richard Shelby he’s a senator and other members of the committee on securities issues Commissioner Pierce served as counsel to SEC Commissioner Paul Atkins she also worked a staff attorney in the SE C’s Division of Investment Management Commissioner Pierce was associate at Wilmer Cutler Pickering now Wilmer hail and clerked for judge Roger and a well of the Court of Federal Claims Commissioner Pierce earned her bachelor’s degree in economics from Case Western Reserve University and her juris doctorate from Yale Law School obviously an incredible background a varied background well schooled amazing individual hats off to you Hester Pierce so back to what she’s saying about this new proposal on how to regulate cryptocurrencies it says under her plan United States regulators would dramatically shift how they are attempting to regulate blockchain based digital assets they would no longer classify them as financial securities at least not initially currently only a handful of cryptocurrencies are exempt for u.s. securities laws including Bitcoin and ether well there have been a few exceptions to the rule the SEC maintains that the risk is quite high of an initial coin offering being classified as a security under Pearce’s let’s say safe harbor proposal however companies that issue digital tokens will get some breathing room so they can establish their networks and communities before dealing with regulatory requirements which which makes sense the folks because it like it says it gives them some breathing room gives them time to develop their network and get their message out and build stuff before the crush of compliance and regulations come down we need regulatory clarity for the space but at least this gives them breathing room and then they know what the lay of the land will be in the future so speaking on Thursday at the International blockchain Congress in Chicago so we see this on Twitter it says right from the Chicago blockchain you can follow them on Twitter you can see their Twitter handle us at CH I blockchain it’s at the International blockchain Congress 2020 and there’s Hester Pierce herself as decentralized networks are a powerful societal asset described SEC Commissioner Hester Pearce this morning while outlining her token safe harbor plan at block rest which were going over to her token safe harbor plan so as she was speaking Pearce explain how crypto related firms will be granted a three-year grace period from the launch of their first token sale to reach a certain level of decentralization if achieved such tokens would no longer meet the SEC criteria for being classified as securities under the federal securities law several leaders in the crypto space are applauding the commissioners approach and we’re applauding it here as well so it’s awesome to see just kind of forward momentum even if it’s just baby steps they’re applauding the commissioners approach to regulating the new industry with a light touch that doesn’t drive entrepreneurs out of the country in search of government’s with a more flexible framework for tech innovation that’s so true we always again we always talk about on this channel it’s like if the United States doesn’t get regulatory clarity out there they’re gonna lose out on these entrepreneurs that are innovating they may flee to other countries and take their tech to other countries take the jobs to other countries in the United States could be left behind so it’s good that they’re making this baby step says Katherine hooli who is the CEO of Finance United States and her quote is if adopted the proposed safe harbor could be the most groundbreaking and development for the United States cryptocurrency market to date by putting development first in giving Project Runway to build robust networks the proposed safe harbor puts an important stake in the ground towards supporting American access and acceptance of digital asset markets in the long run it will help bring more Americans into digital asset trading in foster greater market network participation great quote there in the long run it will help bring more Americans into the digital asset trading in foster greater networked participation here here Thank You Katherine Cooley the proposal underscores how a blockchain project arrives a decentralization it needs time developers users use cases steady adoption you can see all of the headlines that are slowly coming out in the crypto space there’s a steady adoption but they’re all weary of just regulations now according to the proposal it does say the analysis of whether a token has offered or sold as to security is not static and does not strictly adhere to the digital asset so while some tokens might have the characteristics of a security when they first introduced their fluid and their purpose can evolve as their networks expand Steve cockiness CEO of blockchain Protocol al-quran calls the formal proposal an important step and his quote is the blockchain industry and regulators need to continued a healthy dialogue for the United States to truly become the global and responsible leader in the chain innovation adds Katy gibart general Council of institutional crypto custodian Anchorage the quote is we urge the Commission to move promptly to adopt it and to consider other innovative ways to increase investor choice in the digital asset space it goes on to say if Pierce’s proposal is accepted then it could establish strict rules for crypto and blockchain projects when raising capital via token sales including issuing requirements for personal disclosures source code disclosures appropriate public announcements and a public list revealing the identities of the ICO team members the idea is to protect the consumers we’ll also create an environment that allows innovation to flourish that’s a perfect way to say you know protecting consumers that’s the primary thing you need to protect the consumers but you also want to create an environment that allows the innovation like it says here to flourish let the innovation flourish create these projects protect the consumers and have the correct guardrails in place so this space can flourish and the quote here is the definition of network maturity for a cryptocurrency is intended to provide clarity as to when a token transaction should no longer be considered a security transaction but as always the analysis will require an evaluation of the particular facts and circumstances Pearce acknowledges that the success of the safe harbor proposal depends on token issuers acting in good faith and it does not undermine any necessary enforcement action against fraudulent ICS or other illegal activities so great momentum in the space great to see I’m glad this was set to me as kind of a heads up to do a little video on this so I deeply appreciate that so here was another article that we saw which I thought was pretty interesting SEC Commissioner Hester price Pearce wants to give legitimate crypto projects a shot a success without running afoul of US securities so again to your official at the SEC and she’s nicknamed crypto mom by the blockchain community see she has formally proposed a safe harbor tokens like we said that’s great so let’s go here it says to date the SEC has brought enforcement actions against a number of companies that created and sold tokens including telegram and kik two major messaging platforms so the analysis of whether tokens offer sole security is not static and is not strictly adhere to the digital assets we went over that earlier so here it says ether the native token of the ethereum blockchain may be one such example SEC Director of corporation finance William Heinemann speaking on his own behalf and out the agencies back in June of 2018 said ether by that point did not appear to be a security an SEC chairman J Clayton later appeared to endorse this view writing that digital assets could at some point no longer be investment contracts so it’s very interesting I just want to kind of go over that especially with what Hester Pierce has proposed with this three-year safe harbor period for token sales the last thing I want to go over since we’re talking about Hester Pearce this article is a couple weeks old but she says her self-regulation can stifle the creative juices in people so in a different event a few weeks ago she said she was and she invited the audience to talk to her directly to block land solutions event in Cleveland Ohio and she explained how she got the nickname of crypto mom but those weren’t the best parts the main attraction of the December 9th fireside chat were her thoughts on challenges of regulatory compliance in a time of rapid innovation and it says here policy doesn’t change from administration to administration said peers who finally recalled her hometown roots as a 1993 graduate of Case Western University as a regular we need to learn from and adapt to new technology here here so I’m glad that you know we have crypto mom here on the SCC she seems to be Pro crypto I would say obviously she’s Pro crypto were very appreciative of what she has proposed with this three heart a three year safe harbor proposal so thank you so much for tuning in cryptocurrency portal day please leave your comments in the comment section below what you think about what Hester Pearce is trying to accomplish what you think about regulations and in the United States in general and any other comments you may have about the crypto space I’d love to have discussion in this on this channel and I always respond to all comments and please smash that thumbs up but it actually really helps the channel helps out with Google and YouTube algorithms so if you if you like this video please smash that thumbs up but I’d really appreciate it and also if you’re 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