SEC Commissioner Decries Agency's Strange Crypto Regulation Approach

SEC Commissioner Peirce criticized the agency's "strange" approach to crypto regulation, especially using enforcement rather than establishing clear rules.

Peirce expressed frustration that the SEC has dragged its feet on approving Bitcoin spot ETFs, forcing court intervention.

The SEC's practice of "regulating by enforcement" by suing crypto companies is problematic, pushing crypto activity outside US control.

Peirce advocates working together on ideas like a token "safe harbor" rule to allow projects time to decentralize before facing regulations.

Peirce reiterated the SEC's role in prosecuting fraud, but said clear rules would better distinguish good vs bad behavior in crypto.