SEC Commissioner Hester Peirce, known for her digital asset friendliness, has criticized the actions of her colleagues regarding the Telegram token sale. The transcript of the speech is posted on the Securities and Exchange Commission (SEC) website.
During her speech at the Blockchain Association Singapore conference, the commissioner stated that the SEC was fundamentally mistaken in harassing and punishing Telegram. As part of the settlement of the conflict, the management of the messenger pledged to return $ 1.224 billion raised from investors, pay a fine of $ 18.5 million, and refuse to issue digital currency or tokens in the next three years.
According to Pierce, known as “cryptomam”, Telegram’s decision to use the SAFT (Safe Agreement for Future Tokens) should have protected the project from violations of securities laws. But instead, the regulator convinced the court that Gram tokens should be considered securities.
“I do not support the message that distributing tokens inherently involves a securities transaction. What the SEC’s Telegram complaint cast as evidence of an illegal securities offering—that “the project would require ‘numerosity’: a widespread distribution and use of Grams across the globe,” I see as a necessary prerequisite for any successful blockchain network. Moreover, the settlement produced an unsatisfying result—the abandonment of the project.” Peirce explained.
The SEC Commissioner has again advocated the introduction of a three-year regulatory vacation for startups with token sales. According to Peirce, this time is enough for startups to develop their decentralized networks and communities without being distracted by supervisory issues.
Recall that US President Donald Trump has nominated Hester Peirce for a second term as SEC Commissioner.