{"id":128043,"date":"2025-04-27T05:16:26","date_gmt":"2025-04-27T05:16:26","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=128043"},"modified":"2025-04-27T05:16:26","modified_gmt":"2025-04-27T05:16:26","slug":"us-crypto-rules-like-floor-is-lava-game-without-lights-hester-peirce","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=128043","title":{"rendered":"US crypto rules like &#039;floor is lava&#039; game without lights \u2014 Hester Peirce"},"content":{"rendered":"<p>Source: Cointelegraph.com NewsSEC Commissioner and head of the crypto task force, Hester Peirce, says US financial firms are navigating crypto in a way that\u2019s similar to playing the children\u2019s game \u201cthe floor is lava,\u201d but in the dark.<br \/>\n\u201cIt is time that we find a way to end this game. We need to turn on the lights and build some walkways over the lava pit,\u201d Peirce said at the SEC \u201cKnow Your Custodian\u201d roundtable event on April 25.<br \/>\nThe lava is crypto, says Peirce<br \/>\nPeirce explained that SEC registrants are forced to approach crypto-related activities like \u201cthe floor is lava,\u201d where the aim is to jump from one piece of furniture to the next without touching the ground, except here, touching crypto directly is the lava.<br \/>\n\u201cA D.C. version of this game is our regulatory approach to crypto assets, and crypto asset custody in particular,\u201d she said.<br \/>\nPeirce said that, much like in the game, firms wanting to engage with crypto must avoid directly holding it due to unclear regulatory rules. \u201cTo engage in crypto-related activities, SEC-registrants have had to hop from one poorly illuminated regulatory space to the next, all while ensuring that they never touch any crypto asset,\u201d Peirce said.<br \/>\nSource: US Securities and Exchange CommissionPeirce said that investment advisers are often unsure which crypto assets qualify as securities, what entities count as qualified custodians, and whether \u201cexercising staking or voting rights\u201d could trigger custody violations.<br \/>\n\u201cThe twist in the regulatory version is that it is largely played in the dark: burning legal lava and no lamps to illuminate the way.\u201d<br \/>\nPeirce also said that a broker or ATS that cannot custody or manage crypto assets will struggle to facilitate trading, making it unlikely for a \u201crobust market\u201d to develop.<br \/>\nEchoing a similar sentiment, SEC Commissioner Mark Uyeda said at the event that as more SEC registrants work with crypto assets, it\u2019s essential that they have access to custodial options that meet legal and regulatory requirements.<br \/>\nUyeda said the agency should consider letting advisers use \u201cstate-chartered limited-purpose trust companies\u201d with the authority to hold crypto assets as qualified custodians.<br \/>\nRelated: Blockchain needs regulation, scalability to close AI hiring gap<br \/>\nMeanwhile, the recently sworn-in chair of the SEC, Paul Atkins, said that he expected \u201chuge benefits\u201d from blockchain technology through efficiency, risk mitigation, transparency, and cutting costs.<br \/>\nHe reiterated that among his goals at the SEC would be to facilitate \u201cclear regulatory rules of the road\u201d for digital assets, hinting that the agency under former chair Gary Gensler had contributed to market and regulatory uncertainty.<br \/>\n\u201cI look forward to engaging with market participants and working with colleagues in President Trump\u2019s administration and Congress to establish a rational fit-for-purpose framework for crypto assets,\u201d said Atkins.<br \/>\nMagazine: Bitcoin $100K hopes on ice, SBF\u2019s mysterious prison move: Hodler\u2019s Digest, April 19 \u2013 25<a href=\"https:\/\/cointelegraph.com\/news\/united-states-crypto-custody-regulations-floor-lava-hester-peirce-sec?utm_source=rss_feed&amp;utm_medium=rss&amp;utm_campaign=rss_partner_inbound\" target=\"_blank\" class=\"feedzy-rss-link-icon\" rel=\"noopener\">Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Source: Cointelegraph.com NewsSEC Commissioner and head of the crypto task force, Hester Peirce, says US financial firms are navigating crypto in a way that\u2019s similar to playing the children\u2019s game&hellip; <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/128043"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=128043"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/128043\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=128043"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=128043"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=128043"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}