SEC Chair Calls for Clear Rules on Digital Assets
In his recent remarks at the Crypto Task Force Roundtable, SEC Chair Paul Atkins emphasized the need for clear regulations surrounding digital assets. Atkins believes that establishing precise rules for cryptocurrencies could unlock significant benefits in terms of efficiency and cost reduction.
Criticism of Previous SEC Administration
Atkins took a swipe at the previous SEC administration led by former Chair Gary Gensler, accusing them of stifling the growth of the cryptocurrency market. Gensler, in a recent CNBC interview, defended his anti-crypto stance by claiming that the majority of digital assets are driven solely by market sentiment.
Praise for “Crypto Mom” Hester Peirce
In contrast, Atkins commended SEC Commissioner Hester Peirce, fondly known as “Crypto Mom,” for her advocacy of sensible crypto regulations. He acknowledged Peirce’s efforts in promoting a balanced approach to regulating the crypto industry.
Focusing on Custody Rules
The recent SEC roundtable discussion centered on the challenges associated with custody rules for digital assets. Some participants argued for the establishment of an alternative custody regime tailored specifically for cryptocurrencies.
Democratic Commissioner’s Concerns
Caroline Crenshaw, the sole Democratic commissioner at the agency, voiced her dissent against crypto regulation, citing the existing SEC custody rules as a gold standard for investor protection. Despite acknowledging the potential benefits of digital assets, Crenshaw raised concerns about the unique risks posed by crypto and blockchain technologies.
During the roundtable, Crenshaw questioned whether regulatory standards should be different for crypto assets and emphasized the importance of maintaining robust rules to safeguard investors.