SEC commissioner calls for regularity clarity on crypto, and the industry couldn’t agree more.
Hester Peirce, a crypto-friendly SEC commissioner, calls for more clarity after the BNY Mellon announcement.
US Securities and Exchange commissioner affectionately referred to as “Crypto Mom” for her sympathetic stance towards crypto, stated that BNY Mellon’s crypto plans make it more pressing for US regulators to take action and bring more regulatory clarity. Crypto industry leaders agree that more clarity is seriously needed for the further uptake of digital assets.
Earlier this week, BNY Mellon announced that it would add crypto to its asset-management services. Implying BNY’s announcement, Hester Peirce stated that this “adds to the urgency of us taking some sort of action in this area to provide more clarity.”
Peirce’s currency call, when turned into action will continue that policy trend towards more clarity, giving assurance to institutions mindful of potential regulatory risks. Peirce has called for a type of “regulatory safe harbor” for decentralized finance projects that would provide them with a couple of years to get everything in place before the SEC comes after them for securities fraud.
However, the US government is slow when it comes to crypto. But a new administration can breathe new blood into the SEC.
“It’s not only that there have been calls for clarity for some time and that a new administration brings the chance to take a fresh look,” stated Peirce, “but it also is a moment where it seems others in the marketplace are also taking a fresh look.”
Peirce is one among many in the machinery of government, of which she does not have a high opinion—“Regulators have not done a great job,” she stated early September, referring to the US regulatory attitude toward crypto.
For her crypto-friendly stance, Peirce could be sticking her neck out.
“Bureaucracy is difficult,” she said in a recent interview “It’s really hard to get anything done.”
However, things could be changing soon.
“Regulatory barriers seem to be rapidly declining in all jurisdictions—even in the US, which has historically lagged behind Europe until only recently,”
Seamus Donoghue, VP Sales & Business Development
“Even the most staid conservative firms now feel comfortable with the regulatory clarity to get involved with crypto markets.”
Industry leaders yesterday highlighted the importance of BNY Mellon decision, continuing that this development should be matched with a supportive approach from the crypto industry, like “ramping up its compliance and risk monitoring programs, reducing market manipulation and continuing to raise customer protection standards,” as Asaf Meir, CEO at cross-exchange risk monitoring platform Solidus Labs stated.
Therefore, the crypto industry will have to work together with policy-makers in Washington, not just the New York’s finance establishment.
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