SEC commissioner reiterates ‘the point of crypto’ as market aims for recovery

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Hes­ter Peirce, a com­mis­sion­er on the Secu­ri­ties and Exchange Com­mis­sion (SEC), said that after a ter­ri­ble year, indus­try play­ers need to remem­ber what cryp­to is real­ly about.

In a speech at the Dig­i­tal Assets at Duke con­fer­ence, Peirce laid down some lessons to be learned from the issues that the cryp­to indus­try had to face last year. Accord­ing to the com­mis­sion­er, 2022 was a “ter­ri­ble, hor­ri­ble, no good, very bad year” for both the cryp­to space and reg­u­la­tors. How­ev­er, Peirce believed there were valu­able take­aways from the series of prob­lems that arose last year. She explained: 

“Under­ly­ing these lessons is the truth that tech­nol­o­gy takes time to devel­op and often must com­bine with inno­v­a­tive devel­op­ments in oth­er fields to real­ize its full potential.” 

In addi­tion, the SEC com­mis­sion­er under­scored that the indus­try must always keep in mind that cryp­to is not about dri­ving the prices up and dump­ing tokens to some­one else. Peirce high­light­ed that the indus­try must remem­ber that the under­ly­ing tech­nol­o­gy is about “solv­ing a trust prob­lem” and how peo­ple can inter­act and trans­act with peo­ple they don’t know. She explained that: 

“Tra­di­tion­al­ly, peo­ple have looked to cen­tral­ized inter­me­di­aries or gov­ern­ment to solve this prob­lem, but tech­nol­o­gy like cryp­tog­ra­phy, blockchain and zero-knowl­edge proofs offer new solutions.”

Apart from this, the com­mis­sion­er also urged “peo­ple who believe in crypto’s future” not to wait for reg­u­la­tors to fix prob­lems but instead act to stamp out harm­ful prac­tices and encour­age good behav­ior with­in the industry. 

Peirce also said that it’s up to peo­ple with­in the indus­try to devel­op crypto’s val­ue. “Crypto’s val­ue propo­si­tion depends pri­mar­i­ly on the builders of this tech­nol­o­gy, not on reg­u­la­tors like me, who lack tech­ni­cal exper­tise and stand on the periph­ery look­ing in,” she noted. 

Relat­ed: For­mer SEC chief blasts ‘bogus’ catch­phrase: ‘Reg­u­la­tion by enforcement’

The last year was filled with chal­lenges for those who believe in the space. Despite the cat­a­stro­phes, there are still some good accom­plish­ments for the space, like its dis­play of resilience against mar­ket chal­lenges that some­how sets the stage for a stronger foundation. 

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