Hester P. Peirce of the US Securities and Exchange Commission reiterated that courts aren’t the only route to clarity on crypto regulation.
“I will say that litigation is not the most effective way to carry out regulations,” Peirce said during an appearance on Bloomberg TV Tuesday afternoon. “Certainly enforcement actions are one tool that we have in our toolbox, but we have other tools.”
Peirce’s remarks come as reports claim that Binance, and its CEO Changpeng Zhao, will plead guilt and pay more $4 billion to the Department of Justice in an agreement. According to the Wall Street Journal, Zhao will also resign from his post.
“I can’t talk about ongoing cases,” Peirce said. “But I will say that with all of these cases that move forward, we should really be thinking proactively about building a regulatory framework…that would work and allow companies to do business in the United States, and that’s what I’m hoping we can work on in the coming months and years.”
Commodity and Futures Trading Commission, along with the DOJ is scheduled to announce “separate but related cryptocurrency enforcement actions” Washington DC, Tuesday afternoon. According to the DOJ, no SEC officials will attend.
Blockworks request for comments was not responded to by the SEC or DOJ.
Bloomberg News reported that the announcement today will also include details about Binance’s agreement with the Department.
Data released by the SEC last week show that in 2023 it will increase its enforcement actions from 2022 to 2023.
“Fiscal year 2023 was another highly productive and impactful year for the SEC’s enforcement efforts relating to crypto asset securities,” The agency reported in its report.
Peirce acknowledged that she doesn’t always agree with the other commissioners but said that the approach of the agency to the crypto-industry as a group needs improving.
“I would take issue with the characterization that I’m an advocate for the industry,” She said “What I’m an advocate for is people being able to come into the SEC and figure out…what regulations apply, and then comply with those regulations.
“That’s where I think we’ve fallen down on the job, and I think that’s…where the conflict has sometimes arisen between me and my colleagues.”
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