US crypto rules like 'floor is lava' game without lights — Hester Peirce
SEC Commissioner Hester Peirce likened the navigation of crypto by US financial firms to the children's game "the floor is lava," emphasizing the challenges posed by unclear regulatory frameworks. She stated that firms must avoid directly holding crypto assets due to ambiguous rules, which complicates their engagement in crypto-related activities. Investment advisers face uncertainty regarding which crypto assets are classified as securities and the qualifications of custodians. Peirce highlighted that without proper custodial options, brokers and alternative trading systems (ATS) would struggle to facilitate trading, hindering market development. SEC Commissioner Mark Uyeda supported the need for qualified custodial options, suggesting state-chartered limited-purpose trust companies. SEC Chair Paul Atkins expressed optimism about blockchain technology's benefits and emphasized the need for clear regulatory guidelines to reduce market uncertainty.
