SEC Commissioner Hester Peirce Advocates for Rethinking International Regulatory Standards

A prominent U.S. regulator, Hester Peirce, has urged international standard-setters to reconsider their approaches to regulation, particularly as national governments increasingly assert control over domestic policies. Speaking at the Risk Live conference in Boston, Peirce emphasized the need for regulatory frameworks that align with the unique characteristics of the U.S. market.

Key Takeaways

• Hester Peirce calls for a reassessment of international regulatory standards.
• She criticizes the imposition of foreign regulations on U.S. markets.
• Peirce advocates for a delay in the U.S. Treasury clearing mandate to ensure proper implementation.

The Call for Rethinking International Standards

Peirce's remarks come at a time when global regulatory bodies are pushing for more uniform standards across borders. She expressed concern that the current trend of internationalism could lead to regulations that do not fit the U.S. context.

"If by internationalism, you mean we all go to a nice place in Europe, and we come up with some standards, which we then are told we have to take home and impose on our citizens, that’s a problem because that’s not how we do regulation here," Peirce stated.

This statement highlights her belief that regulations should be tailored to the specific needs and conditions of the U.S. financial markets rather than being dictated by international consensus.

Concerns Over U.S. Treasury Clearing Mandate

In addition to her comments on international standards, Peirce also addressed the upcoming U.S. Treasury clearing mandate. She warned that the current timeline for implementing these new rules, which require a significant portion of U.S. Treasury transactions to be cleared by the end of 2025, is impractical.

• Proposed Actions:
  • Delay the implementation of the clearing mandate.
  • Establish a task force to oversee the transition and ensure a smooth implementation process.

Peirce emphasized the complexity of the changes and the importance of getting them right. "This is complicated, and we want to get it right – that’s why I am suggesting a task force to help steer the implementation," she said.

The Importance of Tailored Regulation

Peirce's advocacy for tailored regulation reflects a broader debate within the financial community about the balance between international cooperation and national sovereignty in regulatory matters. As countries navigate the complexities of global finance, the challenge remains to create frameworks that protect investors while fostering innovation and competitiveness.

Conclusion

Hester Peirce's calls for a rethink of international regulatory standards and her concerns regarding the U.S. Treasury clearing mandate underscore the need for a regulatory approach that is both flexible and responsive to the unique dynamics of the U.S. market. As the financial landscape continues to evolve, the dialogue around these issues will be crucial in shaping the future of regulation in the United States and beyond.

Sources

• SEC’s Peirce calls for rethink of international standards, Risk.net.
• SEC’s Peirce calls for US Treasury clearing delay, Risk.net.