{"id":158945,"date":"2021-01-20T20:06:32","date_gmt":"2021-01-20T17:06:32","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/secs-crypto-mom-demands-innovation-says-you-cant-prosecute-an-algorithm\/"},"modified":"2021-01-20T20:06:32","modified_gmt":"2021-01-20T17:06:32","slug":"secs-crypto-mom-demands-innovation-says-you-cant-prosecute-an-algorithm","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/secs-crypto-mom-demands-innovation-says-you-cant-prosecute-an-algorithm\/","title":{"rendered":"# SEC\u2019s “Crypto Mom” demands innovation, says you can\u2019t prosecute an algorithm"},"content":{"rendered":"

“# SEC\u2019s “Crypto Mom” demands innovation, says you can\u2019t prosecute an algorithm <\/strong>”
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SEC Commissioner Hester Peirce spoke at the CFC 2021<\/a> virtual blockchain conference on Jan. 20, where she discussed the prospect of working with a new Biden-app<\/a>ointed chairman, and touched on her hopes of providing the cryptocurrency space with some \u201csafe harbor\u201d.<\/p>\n

Known affectionately by cryptocurrency enthusiasts as \u201cCrypto Mom\u201d, Peirce addressed the changeover at the SEC that saw former chairman Jay Clayton depart his post in December. Incoming President Joe Biden has since nominated Gary Gensler for the role.<\/p>\n

Peirce said Gensler\u2019s appointment was not yet set in stone, but that the appointment of any new chairman brings an opportunity to approach things with a new set of eyes:<\/p>\n

\u201cThere have been quite a few changes in the last year, and so I think a change in leadership is a good opportunity to take a look at those changes, including institutionalization. We\u2019ve obviously seen the price of Bitcoin rise quite a bit; we\u2019ve seen a lot of activity in the DeFi space, and I think all of these things will provide a nice framework against which a new chairman can take a fresh look at questions across the board in the crypto space.\u201d<\/p><\/blockquote>\n

The SEC commissioner touched on the perennial \u201cSword of Damocles<\/a>\u201d that\u2019s been hanging over the cryptocurrency space since its inception: Namely, regulation. But the goal of regulation should be to provide clarity, according to Peirce, adding that she hoped the new chairman would make sure the U.S was still conducive to innovation.<\/p>\n

\u201cWe really need to embrace innovation, and figure out how we can set up a regulatory environment that\u2019s conducive to innovation, which I think in our space means providing clarity. And so I think that\u2019s something the new chairman will be faced with from day one,\u201d said Peirce.<\/p>\n

In February 2020, Peirce told<\/a> an audience at the Blockress<\/em> blockchain conference in Illinois that she thought the SEC\u2019s \u201cSafe Harbor<\/a>\u201d provisions should be applied to cryptocurrency launches. Currently, as Peirce explained at CFC 2021, new projects are under pressure to prove their non-security status from day one.<\/p>\n

\u201cIf you can\u2019t prove that your token is functional from day one, or that your network is decentralized, you may very well run into a situation where, under the securities laws, it\u2019s treated as a securities offering,\u201d said the commissioner.<\/p>\n

But if Peirce\u2019s proposal to apply Safe Harbor status to crypto launches gains traction at the SEC, it would grant projects an initial 3-year window during which regulatory liability would be ramped up gradually for the purpose of fostering innovation. Peirce said:<\/p>\n

\u201cAnd in that intervening 3 years, you would comply with disclosure orders which would supply those purchasers of tokens some information about you, the development team, and about the token economy. And it would also make sure that the anti-fraud provisions of our securities apply so that you couldn\u2019t lie about those things.\u201d<\/p><\/blockquote>\n

Peirce said her proposal got \u201ca lot of great feedback\u201d, although not every observer<\/a> necessarily agreed at the time, with some characterizing Peirce as cutting a lone crypto-friendly figure in a world of blockchain skeptics. <\/p>\n

However, with the impending arrival of a new SEC chairman just around the corner, Peirce has reason to be optimistic. She said:<\/p>\n

\u201cAs a lot of people know in this space, Gary Gensler actually has a lot of knowledge about crypto as he\u2019s been up at MIT working on a lot of these very issues. And so he\u2019s aware of safe harbor, and it\u2019s a conversation that, if he is confirmed as chairman, I will certainly have with him.\u201d<\/p><\/blockquote>\n

Peirce was also asked about the recent announcement<\/a> by the Financial Crimes Enforcement Network (FinCEN) that cryptocurrency owners with more than $10,000 in foreign accounts would soon have to report their holdings to the U.S Treasury Department. She questioned the practicality, and morality, of the FinCEN\u2019s proposal, adding:<\/p>\n

\u201cWe really do need to be careful when it comes to surveilling the transactions of individuals who are not suspected of any wrong-doing. Wholesale surveillance of their financial transactions is really concerning, because financial transactions are ultimately expressions of who you are as a person, what you do, what you\u2019re buying, what you\u2019re interested in.\u201d<\/p><\/blockquote>\n

The very presence of decentralized finance would also obstruct any such attempts at financial surveillance by FinCEN. As Peirce rightly points out, it can be difficult to identify a legally culpable counterparty when that counterparty might not even be a human being.<\/p>\n

\u201cYou might not have a physical address for the person, or a name for the person \u2014 because it might be an algorithm. When you have a smart contract, how do you actually identify a person or a physical address?” she asked rhetorically.<\/p>\n<\/div>\n

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Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

“# SEC\u2019s “Crypto Mom” demands innovation, says you can\u2019t prosecute an algorithm ” SEC Commissioner Hester Peirce spoke at the CFC 2021 virtual blockchain conference on Jan. 20, where she discussed the prospect of working with a new Biden-appointed chairman, and touched on her hopes of providing the cryptocurrency space with some \u201csafe harbor\u201d. Known…<\/p>\n","protected":false},"author":1,"featured_media":158946,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDEvMjk4OTM1MjgtN2UzZC00NGU4LWFiOGMtNTBhMTE0NzM4YzcyLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74894,74863,74868,74898,117,70934,4965],"class_list":["post-158945","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-blockchain","tag-cryptocurrencies","tag-defi","tag-sec","tag-business","tag-regulation","tag-technology"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/158945","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=158945"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/158945\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/158946"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=158945"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=158945"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=158945"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}