Crypto News
| Published On Jun 22, 2022 7:50 am CEST | By Peter Siu

SEC’s Hester ‘Crypto Mom’ Peirce Speaks Out Against Crypto Bailouts

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While FTX founder and CEO Sam Bankman-Fried on Tuesday announced that he will be injecting $250 million into crypto lender BlockFi to strengthen the platform’s liquidity amidst hard times, Securities and Exchange Commission (SEC) commissioner Hester Peirce holds opposite beliefs.

Peirce, best known in the crypto community as ‘Crypto Mom’, is not a fan of crypto company bailouts and believes it leads to a more sustainable industry when “these things play out”.

Speaking to Forbes, Peirce explained that how painful it might be, the latest crash will separate the wheat from the chaff with the stronger businesses surviving.

She stressed to be against bailouts in the crypto industry, especially for those that took too many risks and turned overleveraged:

“Crypto does not have a bailout mechanism […] I don’t want to come in and say that we’re going to try to figure out a way to bail you out if we don’t have the authority to do it. But even if we did, I would, I would not want to use that authority, we really need to let these things play out.”

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Peirce added however that current times are potentially a valuable learning opportunity for market players and regulators:

“It is helpful for us to see the points of connection. It’s a moment, not only for market participants to learn, but it’s also for regulators to learn so that we can have a better sense of how the market operates.”

Peter Siu

Peter is a former poker-pro, turned crypto enthusiast with 8+ years’ experience in operational roles dealing with all online gaming verticals within large iGaming companies, including Flutter and Entain. Now an expert in the field of Sports Betting, Casino, iGaming, and Poker, he is our team leader and editor. When not working, Peter can be found in the gym or playing sports like football, tennis and more recently padel.