US SEC Commissioner says no to crypto company bailouts

Securities and Exchange Commission (SEC) Commissioner Hester Peirce opposes crypto bailouts after SBF injects $250 million in BlockFi.

Crypto lending platforms have been in dire shape in this bear market and facing a major liquidity crunch.

Despite rumors of insolvency, the SEC commissioner has also publicly expressed her opposition to similar crypto aid, emphasizing that this is a market to figure out who the real builders are.

Hester Peirce, who has always been tolerant of the encryption field and is nicknamed the mother of encryption by the community, accepted an exclusive interview with Forbes. 

She stated that she does not support any encryption institutions to assist others. It is best to let what should happen.

Peirce noted that the SEC could get more tips to act upon during bearish times than bull runs. “Scammers and fraudsters will figure out ways to take advantage of any set of market conditions to try to take advantage of other people. So I’m sure their tactics are changing, and they sometimes prey on people at their lowest point. We’re maybe more likely to get tips from times like this.” (1)

Peirce appreciates these sentiments and tends to prefer the former but still believes that there is room for exceptions. “I’ve kind of been a critic of technology-specific regulation. And to some extent, my own Safe Harbor falls into that category of having a special approach for this specific technology. My response to that is that Congress gave us authority in our original securities laws to adapt and use exempted applications to provide conditions and relief to a specific technology. You want to keep the law as technology-neutral as possible so that it ages well…at the same time. I think sometimes you have to recognize unique features of technology.”  (2)