SEC's Cryptomom Talks New Rule Changes and Meaning for Crypto With Cointelegraph

Backdropped by recent efforts to update exemptions from security offering registration, as well as an ongoing tug-of-war with legislators as to how to handle crypto, Commissioner Peirce sat down with Cointelegraph to discuss recent changes in regulatory approach and what to look for in the next.

New exemptionsOn Dec. 18, the SEC announced a series of proposed changes to their classification of "Accredited investor," a designation based on certain income and/or knowledge requirements.

Accredited investors are allowed to participate in securities offerings exempt from SEC registration requirements under Regulation D. Any change to accredited investor status potentially opens the field of early, private investment to a new segment of people.

As Cointelegraph reported, the SEC hosted meetings on the subject of harmonizing existing exemptions, which currently operate in an extremely complicated and opaque manner as Peirce noted, "Those are things that have built up over a long period of time."

Regarding crypto specifically, Peirce was open-minded about needing a reclassification.

Looking to Congress for direction and choreographyDespite her optimism about crypto's future, at several points the commissioner re-iterated that the SEC alone cannot provide crypto with all of the answers.

Peirce pointed to Congress' ability to supersede SEC frameworks as they did with the JOBS Act of 2012, which among other things included crowdfunding provisions that greatly expanded previously neglected Regulation A exemptions.

News for future prosecutions?One subject that Commissioner Peirce was remarkably evasive on was the SEC's prosecutions and settlements within the crypto industry.

In response to a question about the motivations for pursuing Telegram or other issuers of new tokens, Peirce adamantly denied that the dollar amount of these ICOs was the main motivation for the SEC to take action against them.

When asked about the prospect of using changes to current exemptions as a basis for overriding existing court cases, the commissioner said "No, typically, changes apply only prospectively." That's especially bad news for Telegram, whose legal battle with the SEC will likely extend past the period of public comment on new investor exemptions.