Specifically, during the speech for a George Washington University Law School event regarding the digital economy, Peirce reportedly claimed that DeFi could become a different, sought-after legacy financial measure, given the increase in anti-Wall Street sentiment revolving around the short squeeze of GameStop stocks.
The SEC commissioner reportedly believed the tech could offer a “very good test”, for the agency in charge of regulations, regarding designing the protection for investors and markets.
“Although a work in progress with all the growing pains and rough edges that implies, DeFi’s promises of democratization, open access, transparency, predictability and systemic resilience are alluring,” Peirce reportedly remarked.
She additionally stated that carrying the duty of a regulator, he and others have to stay “mindful of the potential upsides and downsides”, and have to come up with both legal certainty and the room for running testing, in order to offer DeFi a sufficient chance of rivaling with CeFi, in terms of catering to investors financial services.
Peirce further remarked that the SEC should put resources in finding methods to make sure the inclusive nature of the market, since individuals have shown their frustration, stemming originally from the 2008 financial crisis, but most recently from the GameStop trades.
“The digital economy does pose some new regulatory challenges, but it also gives us new tools to meet those challenges. We should use those tools with genuine care for the freedom of the people we regulate.”
The commissioner previously remarked that DeFi poses a few new obstacles for the long-running legal-associated hardships the SEC is looking to take care of.