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SEC Commissioner: We Need a Balanced Approach to Crypto Regulation

Can regulation establish order without suffocating innovation?

In an interview with Roundtable during Blockchain Week, SEC commissioner Hester M. Pierce and DLTX chairman James Haft discussed the sometimes complimentary, sometimes conflicting needs of industry, innovation, and regulatory order. 

The two agreed that regulation is key to the further growth of the industry. But, said Pierce, the sheer speed of innovation in the space complicates the process of devising new regulatory frameworks, even as it puts stresses on the old. 

“We need to alleviate that stress in a way that meets the objectives of the financial regulators, but allows freedom to the innovators,” the SEC official said.  "We're not the visionaries, but we need to build a framework that allows for experimentation." 

Pierce added that regulation is always a zero-sum game, noting that "until regulators see the value [in focusing on blockchain] it's going to be hard to convince them to spend the resources." 

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Watch the full panel: