SEC Commissioner Hester Peirce has unveiled her proposal to implement a "safe harbor" for crypto startups, allowing them a three-year grace period after their initial coin offerings to achieve a level of decentralization sufficient to pass the Howey test.
The Securities and Exchange Commission wants to make it easier to become a sophisticated investor. The term is, technically, “accredited investor,” and currently, it translates roughly to “rich.” Since the agency’s crackdown on ICOs, accredited investors have been a primary way to raise money in the cryptocurrency market. Under the Securities Act of 1933’s Regulation D, it is far easier to sell securities to individuals and businesses that meet this standard. The problem with “accredited investors” that the agency feels it needs to solve is summed up nicely in a Dec. 18 statement by the ever-quotable Commissioner Hester Peirce, also known as “Crypto Mom” for her industry advocacy. “Our current definition includes investors that…
The Securities and Exchange Commission doesn’t understand cryptocurrencies, is unfair, and is out of touch with what its own commissioners are saying in public.
Hester Peirce doesn’t want the government to protect you from dumb cryptocurrency investments. Speaking at a taping of Laura Shin’s Unchained podcast at NYU’s Stern School of Business on March 26, the Securities and Exchange Commission’s “Crypto Mom”—a nickname she picked up after dissenting from the commission’s June 2018 decision not to approve a cryptocurrency exchange traded fund (ETF)—expressed a belief that her agency should be focused on protecting securities investors from fraud, not hindering speculation.