U.S. Securities and Exchange Commission (SEC) Commissioner Hester Peirce has warned that a recent proposal could be devastating for the crypto industry, Bloomberg reported Tuesday. Peirce is a pro-bitcoin commissioner, who is also known in the crypto community as “crypto mom.”
The SEC proposed amendments to regulate “significant Treasury markets platforms” within Regulation ATS last week. The 654-page proposal seeks to “expand Regulation ATS for alternative trading systems (ATS) that trade government securities, NMS [National Market System] stock, and other securities.” It also proposes to “extend Regulation SCI to ATSs that trade government securities” and “amend the SEC rule regarding the definition of an ‘exchange’ to address a regulatory gap.”
Commissioner Peirce warned that while the proposal does not mention crypto, it could give officials sweeping new powers to scrutinize cryptocurrency platforms, including decentralized finance (defi) protocols. She told the publication:
The proposal includes very expansive language, which, together with the chair’s apparent interest in regulating all things crypto, suggests that it could be used to regulate crypto platforms.
The pro-bitcoin commissioner stressed that “The proposal could reach more types of trading mechanisms, including potentially defi protocols.”