SEC’s Hester Peirce Highlights Need for Clear Crypto Custody Rules Amid Current Regulatory Uncertainty

COINOTAG reported on April 27 that during a roundtable organized by the U.S. Securities and Exchange Commission (SEC) focused on “Know Your Custodian,” Commissioner Hester Peirce criticized the existing regulatory framework for crypto assets. She likened the challenge faced by registered entities to playing “the floor is lava” in the dark, emphasizing the need for greater clarity in regulatory guidelines. Peirce contended that the current ambiguity forces firms to tread carefully in their dealings to evade potential regulatory pitfalls associated with crypto assets. She urged the SEC to expedite the creation of clear compliance pathways, underscoring the necessity for definitive guidelines on custody and trading of cryptocurrencies. Such measures, she argued, are vital for fostering a robust and transparent market environment for digital assets.