Next, translate 2-9
Topic: The Crypto Thesis for 2022 - Key trends, people, companies, and projects in the crypto space to watch, along with predictions for 2022.
Original report download link: https://messari.io/pdf/messari-report-crypto-theses-for-2022.pdf
During Chairman Jay Clayton's tenure, "Crypto Mom" might have been a fitting nickname for Peirce. These days, she is more like the Lord Commander of the Night's Watch for cryptocurrency.
In the Clayton era, the SEC was no model of pro-growth crypto policy, but at least the commission avoided harmful, systemic overregulation of markets they didn’t yet understand. Today, winter has come, and Peirce is the last line of defense against soulless, melanin-resistant white walkers, namely Chair Gensler, whose life mission is to become Treasury Secretary by any means necessary, even if it means wiping out an emerging industry that could set American tech back a decade. (I’m just getting warmed up. More in Chapter 4.)
Peirce criticized the SEC for its lack of clarity in its enforcement action against Poloniex. Since 2018, she has been a dissenter supporting spot crypto ETFs. She has outspokenly advocated for improving investment access for non-millionaires, recognizing that private markets have been all the growth in U.S. markets for years. She has done this while remaining loyal to the SEC's investor protection mission, advocating for the modernization of reporting rules, and regulating "beaches" (with lifeguards) as opposed to regulatory sandboxes (treating adults like children).
Peirce’s voice has been a welcome source of self-awareness, capability, and restraint from DC. It is the voice of someone who has done her homework, striving to find solutions rather than imposing blanket bans on anything that seems new and useful.
"When faced with new technology, new products, and new ways of doing things, regulators tend to say no rather than yes, stop rather than go, seeing danger rather than possibility... The SEC’s focus on appropriate investor protection, particularly retail investor protection and market integrity, is understandable... But investor opportunity matters too. What I mean by investor opportunity is the chance for investors to try out new products and services, include new types of assets in their portfolios, use cutting-edge technology, get in on new opportunities at the ground floor, experiment, and learn from the successes and failures of their investments... Investors want to be protected from fraud and have easy access to reliable disclosure information, but they also want to interact with financial firms using the latest technology, have a full range of investment options available to them, and take responsibility for their financial future by spending their hard-earned money as they see fit. Sometimes investors may be willing to take greater risks than regulators deem prudent. A healthy regulatory response will resist the impulse to override investor decisions and instead use the same technology they invest in to attract and educate investors."
Peirce
Yes, we need more voices like hers.
Crypto investors notice and appreciate thoughtful policy. Crypto entrepreneurs notice it too. When policy leaders present viable legal solutions, crypto lawyers love it. For example:
On touting tokens, "Hawking securities without disclosing that you're getting paid and how much violates the law... Nonetheless, we are disappointed by the Commission's settlement... There is no explanation about which of the touted digital assets were securities, the omission suggests we are unwilling to provide additional guidance on how to determine whether a token was sold as part of an offering of securities or which tokens are securities."
On "registration-only" enforcement actions: "Registration violations, even if standing alone, are serious, and our enforcement actions can serve to deter such violations and protect victim investors. However, we should strive to avoid enforcement actions and sanctions that stifle innovation and choke off economic growth brought by innovation... due to fear of enforcement action. A regulatory safe harbor could resolve this unpleasant dilemma."
On paternalism: "We are not performance regulators, so we shouldn't be deciding whether something is good or bad. Investors are considering their entire portfolios, sometimes we look at specific products in isolation. We forget that people are building portfolios."
Most crypto professionals welcome thoughtful regulation, as long as we believe it will be applied fairly and consistently, is technically feasible, and does not violate the Constitution.
Peirce is starting to win support from open-minded policymakers because her stance is clear, consistent, and solution-oriented with respect to jurisdiction. We want and need her defending the walls.