SEC Commissioner opposed support for crypto companies amid market downturn

According to Hester Peirce, the current conditions will reveal projects that are sustainable in the long term and create a solid foundation for the industry in the future

22.06.2022 - 12:30

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What’s new? US Securities and Exchange Commission (SEC) Commissioner Hester Peirce believes that the collapse of the digital assets market will reveal companies that are sustainable in the long term and create a solid foundation for the industry in the future. She spoke out against supporting crypto companies in the current environment, particularly highlighting those that have “eschewed mainstream risk management principles.” In an interview with Forbes, the commissioner also advised investors to be critical of projects that promise high and steady income.

Material by Forbes

What else did Peirce say? The commissioner said that tough economic conditions will help investors and regulators to see how the cryptocurrency market functions during times of acute stress.

She also noted that the SEC is monitoring any activity in the field of cryptocurrencies that falls under the agency’s jurisdiction. Without naming a specific company or service provider, Peirce added:

“When you have an attractive return, you need to be asking questions about its associated risks? And if you’re not getting answers, then you need to think about whether you want to make that investment [in such a project].”

In May, Peirce reported that the SEC may tighten regulation of stablecoins following the collapse of the UST and the temporary loss of the USDT peg to the US dollar. According to her, the regulator has the ability to include in its powers the development of rules for digital currencies and the platforms on which they are traded.

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