As major global companies have started to adopt cryptocurrencies, the call for a clear crypto-regulatory framework has never been more pressing. Hester Pierce, a Republican Commissioner at the Securities and Exchange Commision (SEC) has told Reuters in an interview that there is an “urgency” in regard to taking action in this area.
An advocate of cryptocurrencies, and fondly nicknamed “crypto mom” by those in the community, Pierce has been outspoken as to how the SEC have been less than helpful in terms of regulatory clarity thus far.
“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,” Pierce said.
The need for clear cryptocurrency regulations has been further brought to the attention of the SEC, as major companies such as Tesla, Mastercard Inc, and BNY Mellon Corp have shown their support in recent weeks. Merely days ago, BNY Mellon announced the formation of a digital assets unit, designed to address client’s needs with regards to digital assets, including cryptocurrencies. This announcement comes on the heels of Tesla revealing it had purchased $1.5 billion worth of Bitcoin, and Mastercard Inc announced last Wednesday that they would be supporting “select cryptocurrencies” later this year.
This recent push into the mainstream for cryptocurrencies shows an overall shift in sentiment with regards to this asset class . This acceptance of digital assets by key players, that have, up until now, been viewed with suspicion, and shunned by mainstream financial firms, heralds a new generation of investors.
What this means for the SEC, is that in order to promote its mission to maintain fair, orderly, and efficient markets, the commission will need to take heed of the growing client demand for cryptocurrencies when providing a regulatory framework that includes these digital asset classes.
This will likely be no easy task, as the SEC will need to factor in issues related to cryptocurrencies, such as market volatility, the role of retail brokers, and the difficulty of financial scrutiny of assets in decentralised finance.
With Pierce vocal in her support for a clear crypto-regulatory framework, and with Bitcoin ending last week at an all-time high of around $49,700, the SEC will undoubtedly need to take action as institutional investors continue to show their support.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.