{"id":28623,"date":"2024-04-03T12:26:38","date_gmt":"2024-04-03T12:26:38","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/hester-peirce-challenges-secs-closed-door-approach-to-crypto\/"},"modified":"2024-04-03T12:26:38","modified_gmt":"2024-04-03T12:26:38","slug":"hester-peirce-challenges-secs-closed-door-approach-to-crypto","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/hester-peirce-challenges-secs-closed-door-approach-to-crypto\/","title":{"rendered":"Hester Peirce Challenges SEC’s Closed-Door Approach to Crypto"},"content":{"rendered":"

(Originally posted on : Crypto News – iGaming.org )<\/b>
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United States Securities and Exchange Commission (SEC) Commissioner Hester Peirce has expressed worries about the agency\u2019s position on cryptocurrency custody once more and has called for greater openness and participation from the public.<\/p>\n

Speaking to guests at the yearly SEC Speaks Conference on April 2, Peirce\u2014who aficionados have come to refer to as \u201cCrypto Mom<\/a>\u201c\u2014expressed her dissatisfaction with the agency\u2019s handling of crypto custody regulation. She compared the rules of the SEC to a \u201csecret garden\u201d that has been contaminated by a \u201cparticularly pernicious weed,\u201d making special reference to the contentious Staff Accounting Bulletin 121 (SAB 121).<\/p>\n

SAB 121 outlines accounting standards for organizations engaged in cryptocurrency custody and was released by the SEC in March 2022. But rather than protecting investor interests, Peirce bemoaned the fact that the bulletin\u2014which was created without input from the banking industry\u2014hinders them. SAB 121, in particular, has strict capital requirements that deter many banks from providing crypto custody services to their customers.<\/p>\n

Implications for Investors<\/h2>\n

Peirce underscored the potential repercussions of SAB 121, emphasizing the adverse effects on investor protection and market accessibility. She highlighted concerns that the bulletin compels broker-dealers to divert substantial capital to crypto custody operations or altogether refrain from such ventures. Moreover, in the event of custodian insolvency, Peirce warned of the ambiguity surrounding asset ownership, potentially jeopardizing investor assets.<\/p>\n

\u201cIt is driving broker-dealers to allocate significant capital to their crypto custody businesses or to avoid the business altogether. SAB 121 arguably does not protect investors,\u201d<\/em> Peirce remarked, elucidating the inherent risks associated with the SEC\u2019s current regulatory framework.<\/p>\n

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Peirce\u2019s assessment urges regulators to engage in cooperative engagement with industry stakeholders and acts as a catalyst for more extensive talks concerning crypto custody regulation. Proactive involvement and flexible frameworks are essential to guarantee investor safety and market integrity as the cryptocurrency sector changes further.<\/p>\n<\/p><\/div>\n

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(Originally posted on : Crypto News – iGaming.org ) United States Securities and Exchange Commission (SEC) Commissioner Hester Peirce has expressed worries about the agency\u2019s position on cryptocurrency custody once more and has called for greater openness and participation from the public. Speaking to guests at the yearly SEC Speaks Conference on April 2, Peirce\u2014who […]<\/p>\n","protected":false},"author":34,"featured_media":28624,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[34],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/28623"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/34"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=28623"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/28623\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/28624"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=28623"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=28623"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=28623"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}