The US Securities and Exchange Commission (SEC) Commissioner Hester Peirce, also known as the Crypto Mom, defended the crypto industry at the Duke Conference on Jan. 20.
“Had this conference happened a couple of years ago, to capture the crypto mood, I could simply have lit my speech on fire, watched it burn while someone videoed the blaze, and then created an NFT.”Hester Peirce at the Duke Conference
The SEC Commissioner pointed out the 2022 bear market that bankrupted some top crypto companies and triggered massive layoffs in the industry. She said it’s still early for blockchain technology, and “underlying these lessons is the truth that technology takes time to develop.”
Peirce noted that even the top crypto “prophets” could not possibly know what the future holds for the technology while mentioning that the builders are the primary people who could drive value to the industry, not “regulators like me, who lack technical expertise and stand on the periphery looking in.”
Moreover, the commissioner stated that the industry players should start fixing the major problems that caused the 2022 bear market instead of waiting for regulators to decide for them. Peirce added that regulators should be the “last resort” while encouraging the people who believe in crypto to start acting.
Among other points, she noted that centralized designs of protocols could be “disastrous” for the technology while deep testing and “careful analysis” could prevent this problem.
Furthermore, Peirce also mentioned the importance of risk management, collateral, leverage and concentration in her speech, among other points.
“Last year was so brutal for crypto that some people want to relegate it to the dustbin of failed experiments. Rather than swiping left on crypto, we should remember that new technologies sometimes take a long time to find their footing.”Hester Peirce at the Duke Conference
Peirce’s speech came a few days before the former SEC Office of Internet Enforcement chief John Reed Stark decided to defend the regulator’s move to regulate the industry by “enforcement.” The official called it a misguided argument and said that the expression is a “Bogus Big Crypto Catch Phrase.”