The current SEC Commissioner Hester Peirce, commonly referred to as “Crypto Mom,” has once again used her high stature and platform to advocate for more crypto freedom. This time, she pointed the attention of many to the continually growing decentralized finance sector.
In her speech yesterday at the “Regulating the Digital Economy” seminar held at George Washington University Law School, Peirce stated that DeFi looks to be a good place for regulators to test out regulations to empower investors and the market itself.
Peirce then notably referenced the recent Wall Street drop driven by the whole GameStop trading fiasco. She explained that the monumental event last month opened the eyes of many regarding the traditional financial system’s apparent vulnerability and thus, directed their attention to the DeFi space.
Peirce adds that as regulators, they must be aware and prepared of all the potential ups and downs on top of providing both freedom for experimentation and legal clarity for DeFi to stand par-to-par with CeFi. She then said that the SEC tends to always come up with various suspicions regarding technological innovation, and that approach needs to change.
According to Peirce, the SEC must now accept that times are a-changing. It no longer needs to feel obliged to stop evolution. Instead, it needs to accept it.
All in all, Peirce recognizes that DeFi would definitely prove challenging for regulators to set up adequate regulations to protect the market and its investors. That being said, she feels confident that they could also provide brand new tools to overcome such hurdles.