Bitcoin Bullish SEC Member Makes Interesting Cryptocurrency Proposal!

Hester Peirce, a member of the SEC speaking at the SEC Speaks conference, called for a new era in the regulatory approach to cryptoassets.

Peirce proposed a temporary "safe harbor" that foresees that cryptoassets projects can be exempt from securities regulations under certain conditions.

Hester Peirce: "A Specific Period Should Be Allowed for Cryptoassets Not to Be Considered Securities from the Launch of the Market"

According to Peirce's proposal, cryptoassets that could fall under the definition of an investment contract may be exempt from the SEC's registration requirements for a limited period, provided they meet certain transparency and investor protection conditions. During this process, projects will be given time to gain functionality or to decentralize the network. Additionally, Peirce, who stated that airdrops, NFTs, and certain types of stablecoins should be considered outside the scope of securities, argued that clear and permanent exemptions should be established for these assets.

Peirce, who has taken office as the head of the SEC's Cryptocurrency Task Force, stated that the commission has created uncertainty in crypto regulation and that its approach to punishing the industry has been inadequate.

Peirce, who said, "The biggest problem with crypto is the lack of clarity on when a cryptoasset that begins under an investment contract can be traded as an independent asset," expressed that clear criteria should be defined for when the connection between the investment contract and the cryptoasset is severed.

Peirce also stated that the Commission's past litigation processes have pushed entrepreneurs outside the US, and therefore, the time has come to establish a regulatory framework that ensures investor protection while also promoting innovation. "Initial sales may be securities, but assets that gain functionality or become decentralized should now fall outside that contract scope," he said.

Under the new safe harbor framework, it is planned to impose an obligation on issuers to disclose their public commitments in line with objectives such as fulfilling the network's technical functionality or decentralization and to regularly inform investors. Additionally, Peirce also called for the establishment of a special exemption regime to ensure that token distributions made through airdrops are not considered registered sales.