Hester Peirce, SEC commissioner. Chris Maddaloni/CQ Roll Call Chris Maddaloni/CQ Roll Call
Hester Peirce (the so-called crypto mom) said that digital assets don’t require a new watchdog.
SEC Commissioner said that the financial regulatory system was already "fragmented."
These comments were in response to a Coinbase proposal that crypto oversight be entrusted to one federal regulator.
Hester Peirce, US Securities and Exchange Commissioner, isn't keen on adding another regulator to oversee cryptocurrency.
Peirce stated that she does not believe a new watchdog would be needed for asset classes because there are so many financial regulators.
Peirce said, "We have such fragmented regulation system for financial products & services generally that I don’t know that adding an additional regulator would be my top priority," and was affectionately called the "crypto mama" by digital token enthusiasts.
Peirce did not mention Coinbase in the interview. However, last month, the crypto exchange suggested that a federal regulator should have oversight over digital asset markets. Coinbase claims that the proposal didn't express any preference for either creating a new agency, or redesigning an existing one such as the SEC.
Peirce had in the past decried the SEC's failure to provide a regulatory framework for cryptocurrency, stating that she has been asking for one since years.
She previously stated that she believes this is a major barrier for the industry to be able to grow in a safe manner, while still allowing for innovation.
The US has been struggling for years to figure out how to deal with cryptocurrency. This leaves the market guessing how to navigate this new asset class. While some financial advisors advised clients to invest crypto to take advantage loopholes, others have avoided the space. The SEC recently approved the first bitcoin futures exchange traded funds.
Insider did not receive a response from the SEC regarding Peirce's remarks to Bloomberg.