“Treating all ICOs as securities is not the best method for controlling the cryptocurrency industry”, stated the US Securities and Exchange Commission (SEC) commissioner Hester Peirs.
“I’m afraid that the regulators often treat all ICOs as securities. Therefore, crypto-community often warns about the dangers of the so-called “regulatory sandboxes”. I believe that it is necessary to find suitable regulatory methods that will support the prosperity of innovation. What worries me about sandboxes is that regulators usually sit in the neighborhood with entrepreneurs, “Peirs said.
According to the Commissioner, “open communication” between regulators and those whom they regulate is possible without the “sandboxes”. Instead, Peirce proposed a “rescue” approach, in which the regulator “keeps track of what is happening, but does not stand above the “builders of sand castles”, monitoring every decision.”
At the same time, Peirce acknowledged that “sandboxes” were useful for some regulators, including the UK, the UAE and Singapore. In addition, she questioned the words of SEC chairman Jay Clayton, who in the past stated that “all without exception, ICO offer securities.”
“Given the lack of the development in this sphere, I would not classify all the ICOs as securities or any other type of investments. Regulators should evaluate the facts and circumstances of each individual proposal, “Peirs noted.
In her speech, she also touched on the potential impact of regulation on innovation and added that classifying all tokens as securities can limit the development of appropriate technologies.
“Over time, they will begin to look more and more like securities. Because of this, innovations that do not fall under the description of “securities” can never happen, “Peirs added.