- A Republican commissioner of the SEC expressed a very urgent need for a transparent cryptocurrency regulatory regime
- Crypto enthusiasts usually regard Hester Peirce as the Crypto Mom
- The SEC is all set to investigate the range of problems, including market volatility
A Securities and Exchange Commission (SEC) official stated there is a very strong requirement of a transparent cryptocurrency regulatory regime. Various significant companies such as Tesla, BNY Mellon, and Mastercard are increasingly embracing the substitute asset class.
Hester Pierce’s interview regarding crypto rules
A Republican commissioner at the institution, Hester Peirce, recently gave an interview to Reuters. In the conversation, she stated that it was too early to arrive at any policy conclusions merely based on a Reddit Rally in GameStop Corp and various other stocks. However, she explained that it was magnificent to observe that a fresh generation of investors participated in the market.
Crypto enthusiasts usually regard Hester as the Crypto Mom due to her consistently supportive perspective on the asset class. She advocates for regulators to establish transparent rules that further ensure that crypto-assets survive without fear of disturbing the laws.
Hester explained that the situation is one in which there is a dire call for clarity, and a fresh administration ensures the opportunity to take a fresh look at the same. However, she added that it is also the case where there are also pursuing a fresh look in the marketplace.
Bitcoin’s record high and the consequences
Bitcoin struck record highs this month after Tesla announced its investment worth US$1.5 billion in the crypto assets. Also, BNY Mellon expressed its wish to assist its clients in holding, exchanging, and publishing digital assets. Mastercard also hinted at its plan to introduce some cryptocurrencies on its platform.
Hester emphasized that the individual situation then calls for some urgent action in this framework. They need to provide some more clarity and transparency.
The market jumped into crisis last month after Reddit customers trading on low-cost retail networks grouped to pump GameStop and other stocks’ prices. This set of actions squeezed hedge funds that were bet in opposition to those shares.
The significant volatility activated massive margin calls. These calls were majorly from clearinghouses that assure trades. It further prompted various retail platforms to restrict buying in the influenced securities.
Hester concluded her statement by saying that the SEC is investigating the range of problems, including market volatility, retail brokers’ function, and many more. She added that a wide variety of market participants is likely to help refine price formation.
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