During the Medici Conference, held on May 2, Commissioner Hester Peirce of the US Securities and Exchange Commission (SEC) commented that the focus of regulatory testing environments that legislators are taking is not the best for ICOs and cryptocurrencies.
Peirce added that:
My fear is that the regulators want to take over the processes is the reason why I am often cautious with the so-called regulatory test environments. I am completely in favor of finding ways to impose appropriate regulatory measures that clear the way for innovation to flourish. However, it is always a risk that the regulators themselves are sitting together with the entrepreneurs and developers all the time, as they hinder their work.
The commissioner expressed firmness in his position to maintain an "open communication" between the legislators and the entrepreneurs or developers subject to such measures. "The approach in which the regulator watches over what is happening, but does not directly intervene or remains seated with those responsible for the projects, monitoring all of their design decisions is the best way to go," said Peirce.
According to a Coindesk report:
The Sandboxes [regulatory testing environments] were created by a financial regulator, it is one of the first platforms of this type, which offers a unique opportunity for companies to test and implement their Fintech innovations to provide benefits to both customers and the same financial system, under the supervision of the authorities.
The so-called "sandboxes", in this sense, have become quite popular among international regulators in, for example, Lithuania, the United Kingdom, Singapore, Malta, among others. In fact, those who advocate its use think that they are tools that allow legislators to be satisfied, without interfering with the progress of the project.
Since the recent attacks by hackers, swindlers and criminal groups internationally, many government agencies have been tightening their legal frameworks to end these businesses, mostly associated with fraudulent ICOS or businesses with cryptocurrencies.
Although the repressive move can lead to a reduction in the crime rate, it also has an adverse effect on innovations and new companies in the sector, whose developments can be truncated with the approach of state regulatory figures, causing an effect of interference that can alter the course of development.
Although Blockchain's new technologies are based on a decentralized protocol, more and more countries are joining the search for a legal solution to the growing wave of crimes associated with them. For example, yesterday May 9, Amazon applied for a patent to create a system in Blockchain to track the IP of shipments, information that could serve the authorities to obtain the identity of users and establish public order and tax collection.