The U.S. has dropped the ball on crypto regulation and the knock-on effects of that failure keep her up at night says Securities and Exchange Commissioner Hester Peirce.
“There’s a lot of fraud in this space, because it’s the hot area of the moment,” Peirce told CNBC on the sidelines of the DC Blockchain Summit this week. “The other piece that does concern me is the way that we’ve sort of dropped the regulatory ball.”
She added, “We’re not allowing innovation to develop and experimentation to happen in a healthy way, and there are long-term consequences of that failure.”
The comments come as the crypto market crash continues.
A large sell-off in digital assets has wiped out half a trillion dollars from the entire market in the space of a few weeks due to the stock market sell-off and TerraUSD crash.
Stablecoins are digital currencies that are coded and designed to be stable, with values pegged to the price of real-world assets such as commodities like gold, or fiat currencies like the U.S. dollar.
