SEC Commissioner Pushes for Simpler Rules to Boost Crypto Innovation
Estimated Reading Time: 3 minutes
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 minutes to learn more
A high-ranking U.S. official from the Securities and Exchange Commission (SEC), Commissioner Hester Peirce, is calling for easier and clearer rules to help grow the cryptocurrency market.
Speaking at a conference in Washington, D.C., on June 5, Peirce said the SEC should do more to support digital assets by cutting down on red tape, offering better guidance, and allowing more choices for storing crypto safely. She believes these changes can help more investors take part in the growing world of crypto while keeping their money protected.
Better Guidance and Clearer Rules for Crypto Investments
Commissioner Peirce criticized the SEC’s slow approval process for crypto products like spot bitcoin and ether exchange-traded products. She said that when asset managers try to introduce new ideas, the SEC should help instead of standing in the way. However, the emphasis was on setting a standard process for approving such products, stating both the industry and SEC staff would benefit from clear and fair procedures.
She also asked the SEC to give more guidance to investment advisers and fund managers about how they can include digital assets in their portfolios. More direction, she explained, would lead to better investor options and allow for more diverse investments. This could open the door for regular people to invest in new and exciting areas safely and with confidence.
Solving the Custody Problem
One of the biggest problems, Peirce said, is figuring out who can safely hold crypto on behalf of investors. As it stands, there’s confusion about whether state-chartered trusts count as banks under SEC rules.
Peirce hopes the SEC will soon explain how these trusts can be used legally for crypto custody.
To this end, she also wants the SEC to rethink its rules about who qualifies as a “custodian” for digital assets. Instead of using old rules designed for traditional banks, she suggested the agency adopt principles that focus on the unique risks of crypto. She believes that by opening up more ways to store crypto safely and making the rules clearer, the SEC can help protect investors while also encouraging new ideas and technologies to grow.
In order to place winning trades with us via Bybit, you can open an account here.
