SEC Commissioner Hester Peirce warns of ‘legacy monetary system’ resistance to innovation

SEC Commissioner Hester M. Peirce urged these “who belong to the previous monetary system” to “embrace innovation and discover methods to convey new voices and new visions into your establishments”.

Chatting with the FinTech panel on the Institute of Worldwide Bankers 2021 annual Washington convention, Ms. Peirce described the dangers related to a legacy monetary system that resists “new concepts, new entrants and new applied sciences.” She warned that:

• contributors within the previous monetary system will use regulation to forestall competitors from technological innovators;
• lawmakers and regulators could try to realize coverage targets that expressly or implicitly trigger monetary establishments to take actions that hinder the expansion of the crypto business;
• elevated regulation could lead people to take steps to “keep away from coping with regulated monetary establishments”;
• lack of readability within the laws surrounding FinTech could discourage current monetary establishments from absolutely participating within the FinTech sector; and
• resistance to innovation within the FinTech sector could persist.

Remark

Commissioner Peirce highlights the necessity for the SEC to additional make clear the therapy of digital property underneath securities legal guidelines and the suitability of cryptocurrency traded merchandise. Ms Peirce appeared optimistic that the elevation of FinHub to a stand-alone workplace throughout the SEC, together with the progress of different regulatory businesses, will assist regulators encourage innovation and progress on this house, relatively than their very own. to face in the best way.

Major sources

1. SEC Speech, Hester M. Peirce: Opening Remarks of the FinTech Panel on the 2021 Annual Convention of the Institute of Worldwide Bankers in Washington

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