Hester Peirce, a Commissioner at the US Securities and Exchange Commission, mentioned the urgent need for clear cryptocurrency regulations amid the adoption of digital assets by leading companies like Tesla and Mastercard.
During an interview with Reuters, Peirce praised the involvement of a new generation of investors in financial markets. The SEC official mentioned that it was too early to draw policy conclusions from the recent Reddit frenzy in stocks and other cryptocurrency assets.
Peirce is known for her crypto-friendly stance and the community also nicknamed her as ‘Crypto Mom’. She asked for clear cryptocurrency regulations to remove the uncertainty regarding the status of digital assets in the US.
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“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,” Peirce said.
The SEC is an important authority for the cryptocurrency market. Finance Magnates reported about a $50 billion crash in crypto assets after the SEC filed a lawsuit against Ripple Labs for selling unlicensed securities in the form of XRP.
Regulatory authorities around the world are planning to regulate cryptocurrency assets amid growing demand from retail traders and the involvement of institutional investors. Tesla, the world’s largest electric-car maker revealed in its latest filing that the company invested $1.5 billion in the world’s largest cryptocurrency Bitcoin. Mastercard, one of the leading global financial firms, announced in the previous week that the firm is planning to accept cryptocurrencies this year. The SEC Commissioner said that there is an urgent need for a clear crypto regulatory framework after the involvement of major companies. Bitcoin touched an all-time high of $49,500 yesterday after growing demand from institutional investors. The total market cap of BTC currently stands at around $870 billion.