SEC's Cryptomom Talks New Rule Changes and Meaning for Crypto With Cointelegraph

Hester Peirce, a commissioner of the U.S.?Securities and Exchange Commission?(SEC), has been a vocal supporter of the cryptocurrency industry. She has earned the nickname "Crypto Mom" for her positive stance on Crypto With Cointelegraph and her willingness to work with the industry to develop regulations that are fair and supportive of innovation.

In a recent interview with Cointelegraph, Peirce discussed the SEC's proposed changes to the definition of "accredited investor" and the meaning of these changes for crypto. She also shared her thoughts on the future of crypto regulation in the United States.

New Accredited Investor Exemptions

On December 18, 2019, the SEC proposed a series of changes to the definition of "accredited investor." These changes would expand the pool of people who are eligible to participate in private securities offerings.

Currently, accredited investors are defined as individuals who have an annual income of at least $200,000 ($300,000 for joint filers) or a net worth of at least $1 million, excluding the value of their primary residence.

The SEC's proposed changes would expand the definition of accredited investor to include individuals who have certain professional certifications, such as Series 7 or Series 65 licenses. The changes would also allow the SEC to designate additional categories of individuals as accredited investors.

Meaning for Crypto

The SEC's proposed changes to the definition of accredited investor are significant for the cryptocurrency industry. Private securities offerings are a common way for cryptocurrency startups to raise capital. By expanding the pool of eligible investors, the SEC's changes could make it easier for cryptocurrency startups to raise money.

However, it is important to note that the SEC's proposed changes do not change the fact that initial coin offerings (ICOs) are still subject to securities laws. The SEC has previously stated that many ICOs are securities offerings and that issuers of ICOs must register their offerings with the SEC or qualify for an exemption.

Peirce's Thoughts on Crypto Regulation

In the interview with Cointelegraph, Hester Peirce said that she believes the SEC should take a "sandbox approach" to crypto regulation. This means that the SEC should allow cryptocurrency startups to experiment with new technologies and business models without fear of being penalized for minor regulatory violations.

Peirce also said that she believes the SEC should focus on regulating the conduct of cryptocurrency market participants, rather than the technology itself. She said that this approach would be more flexible and adaptable, and that it would allow the SEC to keep up with the rapidly evolving cryptocurrency industry.

The Future of Crypto Regulation in the United States

The SEC is currently in the process of developing a comprehensive regulatory framework for cryptocurrencies. However, it is unclear when this framework will be finalized.

In the meantime, the SEC is continuing to enforce securities laws against cryptocurrency market participants. In recent months, the SEC has brought enforcement actions against a number of cryptocurrency exchanges and ICO issuers.

It is important for cryptocurrency market participants to be aware of the SEC's current regulatory stance and to take steps to comply with securities laws.

Other Considerations

In addition to the SEC's proposed changes to the definition of accredited investor, there are a number of other factors that could impact the future of crypto regulation in the United States.

One factor is the outcome of the 2020 presidential election. If a candidate who is supportive of crypto is elected president, it could lead to a more favorable regulatory environment for cryptocurrencies.

Another factor is the development of new technologies. For example, the development of decentralized exchanges could make it more difficult for the SEC to regulate the cryptocurrency market.

Overall, the future of crypto regulation in the United States is uncertain. However, the SEC's proposed changes to the definition of accredited investor are a positive sign for the cryptocurrency industry. These changes could make it easier for cryptocurrency startups to raise capital and could attract more investors to the cryptocurrency market.

The SEC's proposed changes to the definition of accredited investor are a significant development for the cryptocurrency industry. These changes could make it easier for cryptocurrency startups to raise capital and could attract more investors to the cryptocurrency market.

However, it is important to note that the SEC's proposed changes do not change the fact that ICOs are still subject to securities laws. Cryptocurrency market participants should be aware of the SEC's current regulatory stance and should take steps to comply with securities laws.

The future of crypto regulation in the United States is uncertain. However, the SEC's proposed changes to the definition of accredited investor are a positive sign for the cryptocurrency industry.