DENVER
–
U.S.
Securities
and
Exchange
(SEC)
Commissioner
Hester
Peirce
said
the
top
U.S.
investment
watchdog
is
in
an
“enforcement-only
mode”
when
it
comes
to
crypto,
underscoring
the
uphill
battle
the
industry
faces
against
a
litigious
SEC.
Speaking
at
ETHDenver
Thursday,
Peirce,
the
most
crypto-friendly
of
the
SEC’s
five
commissioners,
bemoaned
that
a
regulator
needed
to
attend
the
annual
gathering
of
crypto
developers,
investors
and
marketers
focused
on
Ethereum,
the
number
two
blockchain
behind
bitcoin.
“What
I
reflect
is
the
fact
that
you
all
are
spending
part
of
your
brainpower,”
wondering
how
to
avoid
getting
sued,
she
said
to
the
conference’s
packed
main
stage.
“If
we
had
clearer
rules
you
could
focus
on
building.”
Since
joining
the
SEC
in
2018,
Peirce,
a
lawyer,
has
openly
advocated
for
crypto
in
the
face
of
skepticism
from
many
of
her
colleagues,
including
current
Chair
Gary
Gensler.
While
prefacing
her
remarks
with
a
“these
views
are
my
own”
disclaimer,
Peirce
spoke
openly
about
her
frustration
with
the
regulator’s
willingness
to
seemingly
pass
judgment
on
crypto
as
an
asset
class.
“If
we
all
want
to
bubble
wrap
ourselves
it
would
be
a
much
less
interesting
country,”
she
said.
The
SEC
has
sued
Coinbase,
Ripple,
Kraken
and
others
for
allegedly
bringing
illegal
and
unregulated
investments
to
the
U.S.
public
on
the
basis
that
crypto
falls
under
many
of
the
same
rules
that
govern
better-known
investments,
like
those
in
the
stock
market.
But
those
companies
and
others,
including
Peirce,
say
crypto
should
not
qualify
and
needs
clarity
from
the
regulator
and
lawmakers.
Months
ago,
the
SEC
lost
its
fight
with
GBTC
issuer
Grayscale
over
the
company’s
efforts
to
convert
the
bitcoin
trust
product
into
an
exchange-traded
fund
with
wide
appeal.
That
loss
forced
the
SEC’s
hand
and
led
to
the
regulator’s
approval
of
a
litany
of
bitcoin
ETFs
in
January.
“It’s
remarkable
to
me
that
it
took
a
court
to
do
that,”
Peirce
said.
Despite
the
SEC’s
court-forward
approach,
Peirce
said
the
regulator
and
outside
observers
need
to
continue
developing
regulatory
frameworks
for
crypto,
like
the
token
safe
harbor
act
(Peirce
has
twice
proposed
her
own
safe
harbor
proposal).
She
spoke
of
a
time
when,
perhaps,
SEC
Chair
Gensler
(who
has
broadly
alleged
that
most
cryptocurrencies
are
violating
securities
laws)
would
wake
up
and
change
his
tune
to
the
industry.
“We
need
to
have
the
ideas
ready
to
go,
on
the
shelf,”
she
said.
Read
more:
A
Tale
of
2
SEC
Commissioners
