SEC Pierce Commissioner "Clear regulations needed for U.S. cryptocurrency market"

Hester Peirce, United States Securities And Exchange Commission (SEC) Commissioner and Head Of The Cryptocurrency Task Force, Strongly Criticized The Current Cryptocurrency Regulatory Environment In The United States.

At The 'Know Your Custodian' Roundtable Hosted By The SEC, Peirce Stated, "The Way Financial Companies Are Handling Cryptocurrencies Now Is Like Playing 'The Floor Is Lava' In The Dark." He Emphasized, "We Need To Find A Way To End This Game. We Need To Turn On The Lights And Create A Safe Passage Over The Lava Pit."

Peirce Explained That SEC-Registered Companies Are In A Situation Where They Have To Avoid Risks Due To Regulatory Uncertainty When Pursuing Cryptocurrency-Related Activities. He Pointed Out, "This Game Going On In Washington, D.C. Shows Our Regulatory Approach To Handling Crypto Assets, Especially Crypto Asset Custody." He Added, "We Have To Leap Between Spaces Of Incomplete Regulation Without Directly Touching Cryptocurrencies, And This Game Proceeds Without Even A Light To Illuminate The Path Through Burning Legal Risks."

Currently, Investment Advisory Firms Do Not Clearly Know Which Cryptocurrencies Constitute Securities, Which Institutions Can Be Recognized As Qualified Custodians, Or Whether Staking Or Voting Rights Violations Would Occur. Peirce Warned That Such An Opaque Regulatory Environment Is Inhibiting Innovation And Hindering Market Growth.

At The Same Meeting, Mark Uyeda, Another SEC Commissioner, Also Pointed Out That Financial Firms Handling Cryptocurrencies Should Be Able To Use Custody Services That Meet Legal Requirements. He Suggested, "It Is Necessary To Consider Recognizing Limited Purpose Trust Companies Licensed By State Governments As Qualified Custodian Institutions."

Additionally, Paul Atkins, Recently Appointed SEC Chairman, Evaluated That Blockchain Technology Will Bring "Enormous Benefits" In Terms Of Improving Efficiency, Mitigating Risks, Increasing Transparency, And Reducing Costs. Chairman Atkins Announced, "We Will Work Closely With Market Participants And Collaborate With The Trump Administration And Congressional Colleagues To Build A Reasonable And Appropriate Regulatory Framework For Cryptocurrency Assets."

There Are Also Growing Calls Within The SEC To Drastically Reform The Existing Ambiguous And Repressive Cryptocurrency Regulatory Framework.