SEC’s Hester Peirce Blasts Agency’s Attack on Kraken’s Crypto Staking Platform
February 11, 2023 5002 by adminHester Pierce of the Securities and Exchange Commission criticized the agency's decision to attack the cryptocurrency exchange Kraken, driving the company to cancel its hiring bet plan and pay a $30 million penalty.
In a formal letter of boycott, Pierce made it clear that SEC's repeated attempts to regulate the sector with law enforcement would not be good for the average American investor.
->Today, SEC shut down Kraken's betting plan and saw it as a victory for investors. I object, so I don't want to...
Instead of thinking according to the example plan and issuing specific guidance, we have once again chosen to speak on the basis of law enforcement actions, claiming that it is to show the society that the service provider must apply for registration and provide comprehensive, fair and true information disclosure and investor protection.
[1] according to the law enforcement behavior, it tells us what the law of the new industry is, which is not a reasonable or fair means of supervision. [2] in addition, betting services are not unified, so one-off law enforcement actions and stereotyped analysis simply cannot solve the difficulties.
Pierce shows that reprimanding companies in new industries for wrongdoing, adopting laws and regulations and forcing agreements, rather than providing clear basic guidelines, is paternalistic and lazy.
"however, the most worrying thing is that the solution to the violation of the rules for applying for registration is to absolutely shut down a program that provides people with excellent services. This program will not be available in the United States, and Kraken is prohibited from providing chip services in the United States, regardless of whether or not you apply for registration. A paternalistic, lazy regulator ultimately depends on a settlement solution similar to this one: you don't have to run an announcement process to develop a practical registration process that provides useful information to investors. just turn it off.
While she has an open mind about improving corporate clarity, Pierce shows that it is now clear that SEC has a thorough stereotype about the whole field of login passwords.
"it's probably a good thing to have a new login password pile like Kraken to improve clarity. However, it is not clear whether we want a unified and strict regulatory solution, and whether the regulatory solution is best provided by a regulatory authority that is hostile to data encryption in the form of law enforcement.
You will look up the full letter of doubt here.
