Many regulators – including Hester Peirce of the Securities and Exchange Commission (SEC) – are claiming that more legislation and monitorization of the cryptocurrency space is necessary if digital assets are going to continue to be adopted by huge companies.
Peirce Wants More Rules in the Crypto Space
Over the past few weeks, several large tech and financial companies – such as Tesla – have invested money into bitcoin, the world’s largest and most popular digital currency. In addition, Tesla is also saying that it will consider BTC payments in the future, along with firms such as General Motors and Uber. Lastly, BNY Mellon and other institutions are looking into potentially offering crypto custody services, suggesting that institutional interest in digital assets is growing like it never has before.
Peirce – who is a conservative member of the SEC – has often been dubbed the “Crypto Mom” thanks to her lax rules regarding virtual money. It’s been clear from the beginning she’s eager to learn all she can about it, and she wants to know if perhaps these assets can potentially serve some good in the world of mainstream finance.
However, she’s also looking for more individual regulators to step in and keep an eye on these assets given that so many companies are now looking to obtain bitcoin by the millions. She’s concerned about the lack of rules pertaining to the digital world and thinks it’s time for a little clarity before any more businesses enter territory they do not understand. She states:
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 taking a fresh look… That adds to the urgency of us taking some sort of action in this area to provide more clarity.
Up to this point, bitcoin has been widely popular amongst retailers, though it was rare that it was ever seen as something other than a speculative asset. However, ever since the coronavirus pandemic stepped into the fray, people have been viewing bitcoin as a hedge tool; a store of wealth that could potentially keep one’s assets safe and secure during times of economic strife.
It appears many institutions nowadays – such as MicroStrategy and Tesla, as mentioned before – feel the same way, and with more enterprises slated to engage in similar investments, Peirce thinks the time for additional regulation has come.
People Need to Think Before Investing
She’s concerned about so many large firms simply jumping into bitcoin. She’s confident many aren’t thinking much about their potential investments and are simply getting onboard the crypto train because it’s the thing to do. She says:
To see new investors participating in the markets is a good thing and of course, we want them to be educated and skeptical.