Although there are ongoing efforts to bring regulatory clarity to the U.S cryptocurrency and blockchain ecosystem by amending Federal laws, SEC Commissioner, Hester Peirce suggests that such an approach is not the only option.
Pierce shared these thoughts at the MIT Bitcoin Expo 2019 event at the weekend while deliberating on the matter of crypto regulation with former Commodity and Futures Trading Commission (CFTC) chair, Gary Gensler.
Gensler had proposed that the crypto industry would greatly benefit from a regulatory framework created at the Federal level and targeted even towards less prominent sectors of the space such as security tokens and investment products like a Bitcoin ETF.
Such a framework will be no doubt be more robust than the disperse crypto and blockchain regulatory frameworks released by individual U.S States such as Colorado, Texas, Wyoming, Rhode Island, and California.
In her response to Gensler, Peirce did not condemn the existence of such a big umbrella regulation but instead suggested that Federal laws are not the only way to create a healthy crypto ecosystem, mainly because of the decentralized nature of Bitcoin and other cryptocurrencies.
Peirce pinpointed that the primary source of regulation is people in the crypto community interacting with one another and working together to solve problems that arise along the way.
According to her, that is the main ‘purpose of the Bitcoin idea,’ and even though a regulatory model can include the government, it is “not the only way,” Peirce said.
She further added, “these markets could regulate themselves if we lived in a world where we allowed that.”
Meanwhile, as talks of a new crypto regulatory framework at the Federal level in the U.S continues to linger, Stmarket.co has reported the passage of crypto-related frameworks in Russia, Taiwan, Thailand, and Lithuania.
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