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

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

To print this text, merely register or connect with Mondaq.com.

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

The content material of this text is meant to offer a normal information on the topic. Specialist recommendation ought to be sought in your explicit scenario.

POPULAR POSTS ON: US Expertise

Comparative information to digital currencies

Bull Blockchain Regulation LLP

Comparative information to digital currencies for the jurisdiction of the USA, see our comparability guides part to check between a number of international locations

FinTech Comparability Information

J. Sagar Associates

FinTech comparability information for the jurisdiction of India, see our comparability guides part to check between a number of international locations

High 5 cybersecurity options for 2021

Lewis Brisbois Bisgaard & Smith LLP

As robust because it sounds, it is already over a month into 2021 – and our Knowledge Safety and Cybersecurity staff is on monitor to deal with over 2,000 information safety incidents this yr.

OCC permits home banks to enter Stablecoin Enviornment

Pryor Cashman LLP

The latest Interpretive Letter from the Workplace of the Comptroller of the Foreign money focuses on how home banks can take part in impartial node verification networks and use cryptocurrency …

What to look at in synthetic intelligence in 2021

Sheppard Mullin Richter and Hampton

Synthetic intelligence continues to be a priority and concern of companies, regulators and lawmakers. As we just lately wrote, there was quite a lot of exercise …


Supply hyperlink

About Arla Lacy

Check Also

Technological innovation offers authorities leverage to shortly cut back emissions

(The Dialog is an unbiased, nonprofit supply of knowledge, evaluation, and commentary from tutorial specialists.) …