SEC Critique: Hester Peirce Challenges Enforcement Actions as ‘Arbitrary’ and Highlights Regulatory Ambiguity

SEC Commissioner Hester Peirce expresses concern over the agency’s lack of predictability, particularly regarding recent enforcement actions against blockchain-based projects like Library (LBRY) and ShapeShift. 

Peirce highlights the regulatory ambiguity that led to these actions, labeling them as arbitrary. The SEC charged ShapeShift with buying and selling crypto assets as securities, resulting in a $275,000 settlement. Peirce points out the challenges in understanding how the SEC classifies crypto assets as securities, citing ShapeShift’s struggle to discern this distinction. 

Similarly, LBRY faced a lawsuit for selling unregistered securities, leading to a significant legal setback. Peirce emphasizes the need for a clear and predictable regulatory framework to support investor confidence and encourage innovation in the crypto space, advocating for transparent rule changes after thorough public discussion.

Clever Robot News Desk 19^th April 2024