The United States Securities and Exchanges Commission [SEC]’s Commissioner, Hester Peirce aka Crypto Mom, spoke about her controversial dissent and explained the statement made in the dissent, in an podcast episode of “What Bitcoin Did”. The commissioner also spoke about how she became aware of the very first cryptocurrency, Bitcoin [BTC].
In the month of July 2018, the SEC officially announced their stance on Winklevoss brother’s proposed rule change. The SEC outrightly rejected the Bitcoin exchange traded fund, quoting the main reason being market manipulation. This decision had disappointed the entire community as it one of the key products desired in the space.
In the conclusion of the dissent, the commissioner declared:“I reject the role of gatekeeper of innovation – a role very different from [and, indeed, inconsistent with] our mission of protecting investors, fostering capital formation, and facilitating fair, orderly, and efficient markets. Accordingly, I dissent.”
When asked about this, Peirce stated that as a regulator they play a very important role, taking into consideration the many people have “really interesting idea” and the existence of a dynamic economy. And because of this, it was their role to not stand in the way of innovation.
Hester said:“So I want to be careful to stick to our statutory mandate, which is to uphold the statutory framework and make sure, you know, we have a specific mandate and I want to make sure we stick to that mandate and then allow innovation within the mandate as much as possible.”
The Commissioner went on to say that she was concerned that in a number of areas the commission “sort of stray[s] away”. She added:“We try to become a little bit more interventionist and what we allow and don’t allow and and I think that’s not really where we belong”
Furthermore, Hester proclaimed that she is pro-innovation and that in her perspective, there is a lot of promise in cryptocurrencies and blockchain technology.
She also spoke about how she was introduced to Bitcoin, stating that it was during her time in the university. The Commissioner stated that she and a few of her colleagues worked on the space, adding that it was fun to learn from them and what they thought of its potential.
Peirce went on to say:But I think you know in terms of learning about the topic it’s a big learning curve and so I’m constantly trying to listen to podcasts that discuss the issue and talked to people who were knowledgeable about it but obviously there’s a lot with us. I mentioned there’s a lot within my mandate so I’m trying to follow many issues.”