Radical Suggestion for Cryptocurrencies from Crypto Bull SEC Member!

Hester Peirce, a commissioner at the U.S. Securities and Exchange Commission (SEC), has proposed a “cross-border sandbox” for crypto firms.

This sandbox will allow firms in the US and UK to carry out certain activities under regulatory oversight for a period of two years.

Peirce’s proposal comes in response to a consultation paper from the Bank of England and the Financial Conduct Authority on creating a “Digital Securities Sandbox” (DSS).

“I am writing to provide due diligence for a cross-border sandbox between our respective jurisdictions that would deliver on the promises of DSS and serve our investors, market participants and regulators,” Peirce said in a statement Wednesday.

cryptocurrency Peirce, also known as the “crypto mother” with her friendly attitude, has previously proposed solutions to regulate the crypto industry. In 2020, he proposed a three-year “safe harbor period” that would allow innovators to launch blockchain-based digital projects without having to register and comply with certain federal securities laws.

Under the proposed “micro-innovation sandbox,” the SEC would publish a list of “eligible activities” after public comments. According to Peirce, the institution will also set “monetary ceilings.”

“The purpose of setting such ceilings will be to ensure that participants achieve sufficient scale to gauge market response to their products or services and identify areas for improvement without compromising investor protection or market integrity,” Peirce said. Companies participating in the sandbox will also be subject to anti-fraud provisions.

Companies will be able to participate in the sandbox for two years, provided that they do not exceed the “customer limitations” or monetary cap. “During this two-year period, firms will work with the Commission and its staff to obtain a no-action letter or exemption order covering their activities,” Peirce suggested.

*This is not investment advice.