- The US SEC Commissioner plans to make it more pressing for US regulators to bring more regulatory clarity.
- US Managing Director at eToro told that better regulatory clarity has a barrier for many institutions to start investing in crypto.
- Industry leaders highlighted the significance of BNY Mellon’s decision.
The US Securities and Exchange Commissioner Hester Peirce expressed that the Bank of New York Mellon’s (BNY Mellon) crypto plans make it more pressing for US regulators to take action in getting more clarity.
Also referred to as “Crypto Mom”, Peirce has a favorable stance towards crypto. At the same time, crypto industry leaders agree that they need more transparency to further uptake digital assets.
SEC: Regulatory Clarity on Crypto After BNY Mellon’s Decision
Besides, BNY Mellon announced earlier this week that it would add crypto to its asset-management services. Peirce said that this adds to the urgency of us taking some action in this area to provide more clarity. She was referring to the BNY Mellon announcement.
BNY Mellon’s decision was significant for custody service providers, according to Zenotta CTO and Co-founder Andrew Kessler.
“But the lack of regulatory clarity meant that this would be unlikely to spur much uptake of digital assets,” he said.
While the SEC has several large crypto projects for distributing, it claims securities in unregistered sales. When regulations become more transparent, the interest in Bitcoin should spike. eToro US Managing Director Guy Hirsch also said that better infrastructure and regulatory clarity had been two barriers for many institutions to start investing in crypto.
If turned into action, Peirce’s recent call continues that policy trend towards clarity, assuring institutions mindful of possible regulatory risks. Also, Peirce has long called for a kind of regulatory safe harbor for DeFi projects that can provide them defense before the SEC comes after them for securities fraud.
The regulatory barriers seem to be rapidly declining in all jurisdictions. The US has historically lagged behind Europe until recently, added Seamus Donoghue, VP Sales & Business Development at METACO. Thus, even the most conservative firms now feel comfortable with the regulatory clarity to get involved with crypto markets.
Industry leaders highlighted BNY Mellon’s significance with a supportive approach from the crypto industry. These include ramping up its agreement and risk monitoring programs, reducing market manipulation, and continuing to raise customer protection standards.
Therefore, the crypto industry will have to work together with policy-makers in Washington — not just New York’s finance establishment.