After Bank of New York Mellon announced that it would support Bitcoin services, US SEC officials said that regulatory pressure is increasing

summary:

Hester Peirce, "Crypto Mom" ​​of the U.S. Securities and Exchange Commission (SEC), said in an interview that BNY Mellon's cryptocurrency service plan has forced U.S. regulators to speed up the process of clarifying regulatory direction.
Cryptocurrency industry leaders agree that the industry needs clear regulation, which will also encourage more people to use digital assets.

According to news on February 14, Hester Peirce, a member of the U.S. Securities and Exchange Commission (SEC) and "Crypto Mom", said that the announcement of the cryptocurrency service plan by the Bank of New York Mellon (BNYMellon) has made it urgent for U.S. regulators to take action to remove regulatory barriers. In order to further increase the popularity of digital assets, the leaders of the cryptocurrency industry are increasingly calling for regulation.

Bank of New York Mellon, which has $2 trillion in assets, announced last week that it would provide its clients with storage and transfer services for digital currencies such as Bitcoin. Referring to the announcement by Bank of New York Mellon, Hester Peirce told Reuters:

"This news highlights the urgent need to act to provide clarity on regulation in this area."

Calling on the SEC to take concrete action

Hester Peirce’s recent call, if translated into action, will continue to push for greater regulatory clarity and provide safeguards for institutions that are aware of potential regulatory risks. Hester Peirce has previously called for a “regulatory safe haven” for decentralized finance projects, giving them a few years to develop before the U.S. Securities and Exchange Commission (SEC) prosecutes them for securities fraud.

Although progress on this issue in the United States has been slow, the new administration may inject new blood into the SEC. Hester Peirce said: "This is not only because people have been calling for it for a while, but also because the new administration may re-examine the industry, and people with different opinions may also look at the industry with a fresh eye."

As a government worker, Hester Peirce doesn’t think highly of her agency. In an interview with Decrypt last September, she said: “The regulators are not doing a good job.”

Light of Hope

But that may soon change.

Seamus Donoghue, vice president of Swiss digital asset infrastructure startup METACO, said in an interview with Decrypt:

“Regulatory barriers appear to be falling rapidly in all jurisdictions, including most recently in the United States, which has historically lagged behind Europe in this regard. Even the most conservative companies are now feeling more comfortable with the regulatory clarity surrounding their participation in the cryptocurrency markets.”

Guy Hirsch, an executive at trading platform eToro, said in an interview that better infrastructure construction and regulatory clarity have always been the two major obstacles for many institutional investors to invest in Bitcoin.

Therefore, the cryptocurrency industry needs the attention not only of financial institutions in New York, but also cooperation with policymakers in Washington.

Image source: https://pixabay.com/illustrations/the-company-cryptocurrency-mining-3338207/

Original article: https://decrypt.co/57691/sec-commissioner-calls-for-regulatory-clarity-on-crypto-the-industry-couldnt-agree-more

Author: Ekin Genç

Compiled by: Melody