SEC Commissioner Hester Peirce has criticized the agency for its poor engagement with the public.
Limited Interactions
Peirce stated that individuals and organizations seeking feedback or addressing concerns often face silence from the SEC. She noted that “productive interactions are fewer and further between than they were in the past.”
Discouraging Staff Engagement
Peirce believes that the SEC’s culture discourages staff from engaging with the public. She said that staff members are often limited to providing non-committal responses or delaying discussions.
Fear of Enforcement
Peirce also expressed concerns that meeting with the SEC has become unproductive and potentially risky. She cited the agency’s view of cryptocurrencies as lawless, which has led to fears of enforcement actions based on discussions.
Consequences of Poor Engagement
Peirce warned that the SEC’s lack of engagement is deterring people from seeking its guidance. She said that this could have negative consequences for the agency’s ability to regulate the financial markets effectively.
