Hester Pierce Agrees With Ripple’s View That SEC Has Not Provided Fair Notice• April 4, 2022 2:26 pm • Comments
The SEC has recently made some changes which would change the way accounting is done for businesses that deal with digital assets like crypto.
Essentially, companies would have to list customer’s digital assets that as potential liabilities on their balance sheets because they would supposedly have greater financial and regulatory risk.
With such an announcement, it gave many within the crypto community the impression that the SEC was saying that the digital assets were not considered safe.
Examples within the past have shown that new regulatory actions have always had the potential to affect the way crypto firms were allowed to do business which directly affect customer’s control of their digital assets.
Hester Pierce had also spoke up about the changes, but more specifically with how these new changes were being made.
HP is the bomb! 🌥️💪⛅️💥💥https://t.co/VfV57r9kVX
— K2 (@cryptoCDX) April 2, 2022
In response to the staff accounting bulletin, SEC Commissioner Hester Peirce stated her concern, not with the accounting determination itself, which may be appropriate, but with the way the change is being made.
Commissioner Peirce first reminded those risks are not new and the SEC was already aware of that. Then, she moved to criticize the fact that the SAB does not acknowledge the Commission’s own role in creating the legal and regulatory risks that justify this accounting treatment.
“The Commission has refused, despite many pleas over many years, to provide regulatory guidance about how our rules apply to crypto-assets, so some of the responsibility for the lack of legal and regulatory clarity lies at our doorstep.
Some recognition of the Commission’s own role in creating the conditions to which the staff points as justification for the SAB would be appropriate.”
Basically, Pierce is disagreeing with the way the SEC has been conducting these changes as there was no clear guidance on how digital assets would be treated and any changes that were made always seemed to be sudden and without clear notice.
Additionally, there may be some concerns on also whether some of this regulatory decision-making even lies under the authority of the SEC.
In response to Pierce’s recent comments, Ripple’s General Counsel Stuart Alderoty reacted positively to Pierce’s assessment on Twitter as it really indicates something when the SEC’s own commissioner doesn’t not entirely support the committee’s actions.
Currently, both parties are still working to agree on a briefing schedule since Judge Torres’s recent order to agree on the schedule by both parties.
How does this statement by Hester Peirce not end this case!
— mickle.xrp (@MarketsMickle) April 1, 2022
Ripple is getting nearer to abstract judgment on truthful discover as Decide Analisa Torres ordered each events to agree on a briefing schedule.
The defendants need opening briefs on Might 22, however the plaintiff thinks “it’s untimely” and is probably going trying to lengthen the XRP lawsuit as a lot as doable as time is it’s finest weapon towards Ripple on this case.
The upcoming court docket ruling on the SEC’s movement for reconsideration, nevertheless, would possibly change every little thing. A Ripple win implies that the SEC will probably be pressured to provide the very delicate paperwork concerning Hinman’s 2018 speech.
XRP Holders’ lawyer John Deaton believes the SEC will rather settle than handing over such damning evidence.
To summarize, the most game-changing piece of evidence here is the possible revelation of any documents that indicate past SEC analysis of XRP that deemed it not a security.
SEC Commissioner Hester Peirce Faults SEC for Lack of Regulatory Clarity for Crypto, Ripple Respondshttps://t.co/NmyyOtNYzz
— Michael (@val5linx) April 4, 2022
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