SEC’s Hester Peirce opposes crypto bailouts — SBF didn’t get the memo
Securities and Exchange Commission (SEC) commissioner Hester Peirce has spoken out against crypto company bailouts, arguing it’s actually better to “let these things play out,” to create a more sustainable industry.
Peirce, the most pro-crypto commissioner for the United States SEC, told Forbes that the recent crash in crypto, though painful, is separating strong companies from the weak.
The commissioner made it clear she did not support bailouts for anyone in the crypto industry, particularly those that mismanaged risk and became over-leveraged.
“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.”
The SEC commissioner’s comments come amid a slew of insolvencies, lay-offs, and hiring freezes within the crypto market.
FTX and Alameda Research founder Sam Bankman-Fried is taking a different approach and has been stepping in to rescue crypto companies struggling due to the market crash.
On Tuesday, Bankman-Fried informed his 706,900 Twitter followers that he and FTX will be injecting $250 million into BlockFi through a revolving credit facility to bolster its balance sheets and strengthen the platform.
6) We take our duty seriously to protect the digital asset ecosystem and its customers.
It came only days after Alameda Research agreed to give Voyager Digital a 200 million USDC loan and a “revolving line of credit” of 15,000 Bitcoins (BTC), worth $446.3 million at current prices, to be used “if needed to safeguard customer assets.”
Bankman-Fried told NPR on Sunday that this is something he
Read more on cointelegraph.com
