Cryptocurrencies

SEC, towards a modernization of the crypto-asset holding rules?

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If cryptos cannot adapt to current regulations, it is up to regulation to adapt to cryptos. Hester Peirce of the US SEC sends an encouraging message to the cryptosphere.


Modern assets, modern regulations

On May 25, 2021, during the CoinDesk Consensus 2021 conference, the commissioner of the SEC US Hester Peirce, indicates that cryptocurrencies could force regulators to modernize custody rules.


Custody is an important area for cryptocurrencies, according to the commissioner. However, the application of the existing rules is complicated for this asset class.

She clarified that “the essential message I want to get across is that we have work to do to modernize our custody rules in all areas“. And to add that “as in many other areas, crypto can force us to do this modernization faster than we otherwise would.“.

For Peirce, advisors have a fiduciary responsibility to fully understand the asset class on which they are advising their clients, during discussions regarding best practices for financial advisers who intend to use cryptocurrencies in their clients’ wallets.

Peirce clarified that his comments did not in any way reflect the thinking of the DRY, they are specific to him.

Ready or not ready, that is the question!

The DRY must decide on approval requests for Bitcoin (BTC) ETF. The agency reported in May 2021 that the volatility of Bitcoin (BTC) could mean that he is not yet ready to support a AND F.

Peirce is a long-time advocate of a calibrated approach to crypto regulation. This position is reflected in the latest version of its proposal. Token Safe Harbor.

On the question of Bitcoin ETF, she believes that the main question is whether investors are harmed by the fact that they are forced to leave the traditional framework of transferable securities by wishing to invest in cryptocurrencies.

Peirce believes that the market infrastructure could be ready to accommodate a Bitcoin ETF. However, she did not comment on the possibility of approving a Bitcoin ETF to the United States.

Some give hope for sound regulation of cryptocurrencies, while others delight in the role of the big bad wolf. The threat of tightening crypto regulations is causing panic in the markets and legitimizing this tough position. The perception of positive regulation would be a driving force for the markets and legitimize such a legal framework. Self-fulfilling prophecy, when you hold us.

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Fashion is good, but blockchain is the future, we agree, right ?! It’s a great opportunity and an evolving sector! On a daily basis, my job is to try to popularize cryptos / blockchains as well as possible, which seem to be far too technical.

DISCLAIM

The comments and opinions expressed in this article are those of the author alone, and should not be considered as investment advice. Do your own research before making any investment decisions.

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