SEC Commissioner Hester Peirce is against crypto bailouts: Report

US Securities and Exchange Commission (SEC) commissioner Hester Peirce says she is against what she sees as bailouts being extended to crypto companies feeling the hit of the current bear market.

In an exclusive interview with Forbes (published on Tuesday), Peirce notes that this was her view, especially any such bailouts for companies that clearly do not apply risk management principles that are core to any market.

The commissioner has over the years been a staunch supporter of regulatory clarity for the crypto market, often calling for more to be done to support the burgeoning industry. 

However, in her latest remarks amid the crypto winter, she says she does not see why a company that, due to its bad practices, sank into an over-leveraged hole needs to be helped out of that hole.

She said the SEC has no such mandate from Congress, and she personally wouldn’t support it. She told Forbes:

Crypto winter helps to highlight strong projects

According to Forbes, Peirce also talked about what benefits might come out of a bear market such as this. In her opinion, the tough market conditions, with prices falling massively, is when the community can gauge innovative, valuable projects that will last.

On the other hand, it also offers an opportunity for weak and poorly built projects to disappear.

The crypto winter, as the crypto sector calls the extended downtrend, is also one where market players as well as regulators, learn how the market functions in such conditions.

Peirce also commented on the overall regulation of crypto, noting that she is optimistic about the general take on crypto regulation on Capitol Hill. According to her, a “regulatory framework that offers clarity,” is what the market needs.