SEC’s Peirce Says Crypto’s Lack of ‘Bailout Mechanism’ Is a Strength; FTX CEO as a 'White Knight'

cryptonews.com:

One of the most crypto-friendly members of the American regulatory Securities and Exchange Commission (SEC) has claimed that the bear market could boost sustainability in the industry – stating that she wouldn’t bail out ailing crypto companies even if she could.

During an interview with Forbes, the SEC Commissioner Hester Peirce, stated that crypto “does not have a bailout mechanism” – and that this “has been perceived as one of the strengths of that marketplace.” 

She added:

“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.”

Peirce, who is affectionately known in the space as “Crypto Mom” for her relatively pro-industry stance on regulation, claimed that “when things are a bit harder in the market,” it would be easier to “discover who is actually building something that might last for the long longer term and what is going to pass away.”

Peirce added that both industry players and the SEC could learn a lot from the recent crash. She claimed that the downturn would be “helpful” to let observers “see the points of connection.” The Commissioner called the slump a moment to learn “not only for market participants” but also for regulators, “so that we can have a better sense of how the market operates.”

Meanwhile, Peirce also had some words of warning for those trying to navigate the bear market. She stated that some opportunist criminals would seek to target vulnerable investors, explaining:

“Scammers and fraudsters will figure out ways to take advantage of any set of market conditions to try to take advantage of other people. So I’m