The crypto-friendly SEC commissioner Hester Peirce calls for more clarity for crypto in the wake of BNY Mellon’s announcement and the crypto community and industry couldn’t agree more. In our latest cryptocurrency news, we find out about what’s her idea on regulatory clarity.
Crypto industry leaders agreed that it needs more clarity to encourage the higher uptake of digital assets but regulatory colleagues are not an easy bunch. The crypto-friendly SEC Commissioner referred to as “Crypto Mom” said that BNY Mellon’s crypto plans are even more pressing for the US regulators to take action and to create more regulatory clarity. The crypto industry leaders agree that more clarity is needed or more uptake of digital assets.
Doesn't get more institutional than this…
Bank of New York Mellon, America's oldest bank, plans to eventually treat #Bitcoin and other cryptocurrencies like any other asset.
“Digital assets are becoming part of the mainstream.” –BNY Mellonhttps://t.co/PYyowFhSuj
— Steven Russolillo (@srussolillo) February 11, 2021
BNY Mellon manages $2 trillion worth of assets and announced that it will add crypto to its asset- management services so Peirce told Reuters that this will only add to the “urgency of us taking some sort of action in this area to provide more clarity.” Andrew Kessler who is the CTO and co-founder of Zenotta said that the bank’s decision was very important for the crypto custody service providers but the lack of regulatory clarity means that it will be unlikely to make much uptake of digital assets. Pierce’s agency crashed a few large crypto projects for distributing as it claimed unregistered sales so when regulations became clear, the interest in BTC will spike:
“We will see much FOMO among other US banks who will rush fast-track their digital asset roadmaps.”
New guidance on custody of digital asset securities. Baby steps: https://t.co/o8TcKMlDGp pic.twitter.com/7qzDXl49uv
— Hester Peirce (@HesterPeirce) December 23, 2020
Guy Hirsch who is a managing director at eToro said that better infrastructure and regulatory clarity are the two main barriers for institutions to invest in BTC:
“The OCC’s statement last year that nationally chartered banks can custody crypto provided that clarity,” and it was only a matter of time before a large bank made this kind of announcement.”
Thanks for the mention, but I look forward to the day when the top 100 people in blockchain doesn't include any regulators: https://t.co/geYdlyVy4T
— Hester Peirce (@HesterPeirce) February 8, 2021
Peirce’s recent call for clarity will continue the policy trend towards regulation and it will provide assurance to institutions of the potential regulatory risks. Hester Peirce called for a regulatory safe harbor in the past which will provide them with a few years to get all things done before the SEC comes after them for fraud. The US government is extremely slow when it comes to crypto as Peirce said:
“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, but it also is a moment where it seems others in the marketplace are also taking a fresh look.”
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