Alex Dovbnya
Crypto-friendly regulator Hester Peirce has floated the idea of a joint regulatory sandbox for the US and the UK
U.S. SEC Commissioner Hester Peirce, who’s affectionately referred to as “Crypto Mom” by the cryptocurrency community, has proposed the creation of a joint regulatory sandbox for the US and the UK.
Her proposal would allow firms in these jurisdictions under the same regulatory activities.
Peirce has noted that sandboxes have shown their efficiency when it comes to enabling innovation in sectors with stringent regulations. She has pointed to the fact that disruptive firms are more likely to attract capital if they are part of a sandbox.
Moreover, the crypto-friendly commissioner has stated that sandboxes help increase the level of efficiency of cryptocurrency regulation. She has proposed an information-sharing agreement between the two jurisdictions that would allow the regulators to gain a better understanding of crypto market activities.
Finally, Peirce has also pointed out that such initiatives would be beneficial to consumers and investors since sandboxes make it possible for them to gain access to innovative products and services.
Peirce has stressed that her proposal does not reflect the views of other commissioners. She looks forward to working with her colleagues in the US and across the pond to materialize her idea.
The SEC’s Peirce has repeatedly stressed the importance of speeding up the introduction of a clear regulatory framework in the U.S.
In March, she criticized her regulatory agency for being in “enforcement-only mode” following a streak of high-profile cases against major crypto companies. Earlier, she criticized the SEC for failing to consult with the crypto industry before bringing charges against Kraken over crypto staking.
