"Crypto Laoganma": The digital dollar is not the end of cryptocurrency, and he will leave the SEC in June

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Digital Dollars and Other Stablecoins

On April 28, at the Cryptocurrency Finance Network videoconference in St. Moritz, SEC Commissioner Hester Pierce stated that the role of a potential digital dollar is becoming more and more apparent, and that there should be no impact on the digital currency. Currency poses a threat.

Hester Pierce says:

“People in the central bank naturally think: Hey, we should digitize money, and of course there are two possible outcomes of doing this, it is either good for the function of the central bank or it is not good for the function of the central bank. But for Those other types of digital currencies that are privately developed, I don't think central bank digital currencies will cause them to disappear."

However, Hester Pierce seems to be more concerned about the trust and privacy issues of the central bank's digital currency, she added:

"If you're going to create some kind of digital currency, the privacy issue has to be carefully considered, and I think it's a very important issue for society because people's attitudes towards monitoring transactions are not very acceptable."

How does the "encrypted old godmother" view stable coins? An "interesting" challenge to regulation!

Recently, the Libra Association updated the white paper, which made four adjustments: 1. In addition to providing currencies anchored to a basket of legal currencies, it will also provide stablecoins anchored to a single legal currency; 2. Under the robust compliance framework, enhanced Libra payment system security; 3. While maintaining its main economic characteristics, abandon the transition plan to a permissionless public chain system. 4. Establish a strong management plan for the Libra asset reserve. And this time Libra released a new version of the white paper, which once again raised the topic of whether managed stablecoins are securities products.

Regarding stablecoins, Hester Pierce said they pose an “interesting” challenge for regulators:

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The Last Effort of "Crypto Laoganma": Encrypted Safe Harbor Proposal

In fact, Hester Pierce has been working hard to bridge the gap between the encryption industry and regulators. She designed a "cryptocurrency time limit exemption" policy, hoping to give cryptocurrency projects a three-year grace period in terms of supervision. During this time, crypto project developers are exempt from U.S. federal securities laws so they can focus on building functional and decentralized crypto networks, but then they must determine whether their cryptocurrency transactions constitute a sale or offer of securities.

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Plans to leave SEC in June

Due to her friendliness to the cryptocurrency industry, Hester Pierce is enthusiastically called the "Cryptographic Old Godmother" by the community, but it may be less than two months before she will leave the position of Commissioner of the US Securities and Exchange Commission. Regarding the resignation, Hester Pierce explained that the expiry of the position in June is not the key point, because the US Securities and Exchange Commission can let her continue to work until a new person is hired.

As the most well-known cryptocurrency-friendly faction of the US Securities and Exchange Commission, the departure of Hester Pierce has actually attracted the attention of the cryptocurrency industry. In response to the question that the crypto community is about to lose its "mom," Hester Pierce joked:

“I feel like the SEC is like a parent-teacher conference where it’s not just a crypto mom.”

In addition to joking, Hester Pierce emphasized that compared to a certain person in the US Securities and Exchange Commission, the role of hierarchy and clear supervision is more important. Obviously, Hester Pierce hopes to reflect more institutional advantages rather than "rule of man", so she said:

“The SEC needs to set clear rules and then tell the practitioners in the crypto industry: Now you can let it go. So, what is really important is to establish institutional structures that transcend any specific person.”

After June of this year, regardless of whether Hester Pierce will continue to serve in the US Securities and Exchange Commission, the encryption community will miss her very much.