Hester Peirce slammed the SEC for the $10M poloniex settlement and challenged the regulations US-based crypto companies have to navigate as we are reading more in our latest crypto news today.
Commissioner Hester Peirce slammed the SEC for its $10M settlement with crypto exchange Poloniex after the SEC announced a $10M settlement with the exchange after it was charged with facilitating trades in unregistered securities between July 2017 and November 2019. The SEC asserted that the Poloniex employees stated internally that they want to be more aggressive in circumventing securities regulation in a bid to increase the market share by listing new digital assets which are deemed securities under the new Howey Test of 1946 but Poloniex elected to neither admit nor deny any wrongdoing.
On the same day, Peirce slammed the actions by the regulator emphasizing the regulatory framework that crypto companies have to navigate in the United States. The commissioner outlined several regulatory matters that the SEC was criticized for failing to clarify the regards to the digital asset businesses like how to determine whether the asset is a security and what licenses and exemptions are required to operate on the exchange:
“Given how slow we have been in determining how regulated entities can interact with crypto, market participants may understandably be surprised to see us come onto the scene now with our enforcement guns blazing and argue that Poloniex was not registered or operating under an exemption as it should have been.”
Peirce added that if Poloniex tried to register as a securities exchange or as an alternative trading system with the SEC, the company would have waited for a long time. Also, USD Coin stablecoin issuer Circle acquired Polonized for $400 million back in 2018 and in October, circle spun out the exchange business and sold it to a consortium of investors. Tron’s founder Justin Sun was among the investors that acquired the exchange.
As recently reported, She believes that if the government does decide to ban Bitcoin, they would have to shut down the internet. The SEC commissioner said that governments will have a hard time banning BTC and she also thinks that crypto regulation in the US has to change. Crypto Mom reiterated her belief that the US remains behind the rest of the world when it comes to regulation of digital assets.