SEC Hester Peirce compares us Cripto rules on the ‘floor is a lion game, calls for clearer regulations

Trust Sec Hester Peirce criticized The current state of cryptic regulation in the United States comparing it with the children’s game “The floor is lava”, where companies must avoid direct contact with the crypto means, while obscure regulations are moving. Speaking in OCK “Knowledge of Your Guardian” on the round table, April 25, Peicce explained that the crypted firms must skip from one badly defined regulatory space to another. She pointed out that the regulatory landscape is unsafe, with companies uncertain that crypts qualify as securities and whether the activities such as voting or voting rights could initiate a violation.

Peirce analogue illustrated the confusion that investment advisors face when determining what is qualified as security and who can act as a qualified custody guardian. She emphasized that there were no clear guidelines, leaving companies to work in the dark. This uncertainty, noticed Peirce, makes it difficult for the crypt market to develop within the current regulatory framework.

Mark Uieda, another DC participant, echoed by Peir’s questions and propose The SEC should expand the possibilities of guardianship, including the enabling state rental structural companies for the purpose of serving as Cartodians for the CRIPTO assets. UIeda claimed that without proper guardianship services, brokers and alternative trade systems (ATS) would fight to facilitate crypto trading, distracting market growth.

Peirce also discussed the need for regulations that recognize the differences between different digital means. She claimed that although several cryptic funds require qualified custodians, others may be better adapted to self-detention. She warned about excessively restrictive regulations that could stifle decentralized transactions and called the SEC to adopt a framework that recognizes the nature of various cryptological means.

Its comments came in the middle of a broader discussion on cryptic regulation, with SEC President Paul Atkins expressing support for clearer rules to allow the crystost growing market. Atkins also pointed out the potential advantages of blockchain, such as increased efficiency, reduced risk and greater transparency. He emphasized the importance of working with market participants and legislators to create a regulatory framework that is harmonized with the needs of the crypto industry.

Peirce and Atkinni both criticized the previous leadership under Gary Gensler to contribute to regulatory uncertainty. Peirce explained that as more companies are involved in the CRIPTO, there is an urgent need for clear detention solutions that are in line with legal and regulatory standards. She claimed that without clear guidelines on the classification of guardians and property, the U.S. market crypto continues to face the challenges that spread firmly. All in all, and Peirce and Atkins emphasized the need for a more detailed regulatory approach to allow the crypto industry to bloom while protecting investors.