Crypto Mom’ Hester Peirce says the influx of major institutional players into the crypto space has made the emergence of a firm regulatory framework for cryptocurrencies a top priority. Major U.S. companies are now becoming directly involved with digital assets, with some holding Bitcoin (BTC) on their balance sheets.
Clear-cut Crypto Regulations a Matter of Urgency
Speaking to Reuters, Peirce, a noted advocate for crypto regulations that offer consumer protection while not stifling digital innovation, once again sounded the calls for regularizing the U.S. cryptocurrency legal framework. According to Peirce:
“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. That adds to the urgency of us taking some sort of action in this area to provide more clarity.”
As previously reported by Peirce once advocated for a three-year safe harbor period for crypto businesses back in February 2020. The U.S. Securities and Exchange Commission (SEC) Commissioner has previously railed against the Commission’s reticence to approve a Bitcoin exchange-traded fund (ETF).
Peirce’s comments come following a raft of crypto adoption activity by publicly-listed firms in the country. Indeed, Tesla made waves earlier in February, announcing a $1.5 billion BTC acquisition even as the electronic vehicle car maker says it is considering accepting Bitcoin as payment for its vehicles and may not liquidate the “coins” received.
Mainstream players in the finance arena like BNY Mellon and Mastercard have also announced crypto adoption plans. These developments add to the likes of PayPal and MicroStrategy that helmed the cryptocurrency adoption movement in 2020.
U.S. crypto stakeholders continue to rail about the patchwork of State and Federal regulations and the associated cost of compliance with the existing convoluted regulatory framework. In recent times, some agencies have even begun proposing laws that critics say are an attack on the privacy of virtual currency owners.
Back in December, a U.S. Presidential advisory group declared that Stablecoins must conform to certain financial regulations. This remark came amid efforts by some Congresspeople to enact bank-level laws on stablecoin issuers, a move challenged by several cryptocurrency stakeholders in the country.