Hester Pierce, a U.S. Securities and Exchange Commission (SEC) Commissioner also known in the crypto community as “crypto mom” warns about a recent SEC proposal that could potentially be devastating for the crypto industry.
As reported by Bloomberg this week, the SEC is proposing amendments to regulate “significant Treasury markets platforms” within Regulation ATS last week. In the 654-page proposal the agency seeks to “expand Regulation ATS for alternative trading systems (ATS) that trade government securities, NMS [National Market System] stock, and other securities.” The agency also wants to “extend Regulation SCI to ATSs that trade government securities” and “amend the SEC rule regarding the definition of an ‘exchange’ to address a regulatory gap.”
‘Crypto mom’ Hester Peirce believes that the proposal could give officials newfound authority to attack cryptocurrency platforms, including decentralized finance (DeFi) protocols, despite it clearly mentioning crypto. She reportedly said:
“The proposal includes very expansive language, which, together with the chair’s apparent interest in regulating all things crypto, suggests that it could be used to regulate crypto platforms.”
She added:
“The proposal could reach more types of trading mechanisms, including potentially DeFi protocols.”
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Source: Igaming
