Clear crypto rules urgently needed as major companies embrace asset: SEC official

[webfact]

Clear crypto rules urgently needed as major companies embrace asset: SEC official

By Chris Prentice and Katanga Johnson

 

FILE PHOTO: Commissioner Hester Peirce participates in a U.S Securities and Exchange Commission open meeting to propose changing its decades-old definition of an "accredited investor" in order to allow more Americans to buy shares in private companies, in Washington, U.S., December 18, 2019. REUTERS/Erin Scott

 

WASHINGTON (Reuters) - A clear cryptocurrency regulatory regime is urgently needed as major companies like Tesla Inc, BNY Mellon Corp and Mastercard Inc embrace the alternative asset class, a top Securities and Exchange Commission (SEC) official said.

 

Hester Peirce, a Republican commissioner at the agency, also told Reuters in an interview that it was too soon to draw policy conclusions from a "Reddit Rally" in GameStop Corp and other stocks, but it was "wonderful" that a new generation of investors was able to participate in the market.

 

Dubbed by crypto enthusiasts as the “Crypto Mom” due to her supportive stance on the asset class, Peirce has long advocated for regulators to create clear rules that would allow crypto assets to thrive without fear of breaking the law.

 

"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 also taking a fresh look," she said.

 

Bitcoin hit record highs this month after electric car-maker Tesla said it had invested $1.5 billion in the cryptocurrency and BNY Mellon said it would help clients hold, transfer, and issue digital assets. Mastercard also said it would open up its network to some cryptocurrencies.

 

"That adds to the urgency of us taking some sort of action in this area to provide more clarity," said Peirce.

 

The market was plunged into crisis last month when Reddit users trading on low-cost retail platforms banded together to drive up the prices of GameStop and other stocks, squeezing hedge funds that had bet against those shares.

 

The resulting volatility triggered massive margin calls from “clearing” houses that guarantee trades, prompting several retail platforms to suspend buying in the affected securities.

 

The incident sparked outrage among lawmakers on both sides of the aisle. Vlad Tenev, CEO of trading app Robinhood, Ken Griffin, CEO of hedge fund Citadel LLC and others involved in the saga will testify before Congress on Thursday.

 

The SEC is examining the "gamut" of issues including market volatility, the role of retail brokers, and how the post-trade market functioned, said Peirce.

 

"To see new investors participating in the markets is a good thing and of course we want them to be educated and skeptical," she said, adding that a wide range of market participants could actually help improve price formation.

 

(Writing by Michelle Price; Editing by Alistair Bell)

 

-- © Copyright Reuters 2021-02-15

 

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[ukrules]

16 minutes ago, webfact said:

Bitcoin hit record highs this month after electric car-maker Tesla said it had invested $1.5 billion in the cryptocurrency and BNY Mellon said it would help clients hold, transfer, and issue digital assets. Mastercard also said it would open up its network to some cryptocurrencies.

 

"That adds to the urgency of us taking some sort of action in this area to provide more clarity," said Peirce.

 

Not really, these massive NASDAQ listed companies have already found a 100% compliant and legal way to purchase long term Bitcoin holdings using the law as it stands right now.

 

That's why they're doing it, and Michael Saylor (CEO MSTR) just gave the millions of dollars and many months of legal research that his company paid for away to anyone who wants it.

 

It may take a few months to follow the Saylor guidelines, so inside a couple of months time I think we're going to see something unlike anything that's came before.

 

Buckle up - things are about to get very real.

 

[jesimps]

3 hours ago, ukrules said:

 

Not really, these massive NASDAQ listed companies have already found a 100% compliant and legal way to purchase long term Bitcoin holdings using the law as it stands right now.

 

That's why they're doing it, and Michael Saylor (CEO MSTR) just gave the millions of dollars and many months of legal research that his company paid for away to anyone who wants it.

 

It may take a few months to follow the Saylor guidelines, so inside a couple of months time I think we're going to see something unlike anything that's came before.

 

Buckle up - things are about to get very real.

 

I've been back in the crypto game for a month now after pulling out a few years back when bx in th closed their crypto business. I couldn't face going through the validation process of another company and in any case, crypto was in a bear market. Turned out to be one of the worst decision I've ever made. 

As I say, I've been back in for a month and already my profit has substantially increased and I've made up what I lost selling up last time. I'm now determined to hodl, come what may. There seems to be a lot of good news regarding crypto these days, unlike last time I was into it when every day some govt or institution seemed to be putting the boot in.

[Mike Rodik]

was bitcoin not created to not have influence of big mega corp for profits ?

 

what is next, your bank invest in Bit... it loses half of it worth and ask for a government bailout?

[Krabi King]

"A clear cryptocurrency regulatory regime is urgently needed..."

 

Regulate something that was designed to be decentralized? Gangster governments want in on everything..

[Surelynot]

3 hours ago, jesimps said:

I couldn't face going through the validation process

OMG...yes......nightmare. Gave up on some......now with Coinbase/Ledger

[Sig]

These people are living in the stone age. They are so incompetent to think that this just suddenly dropped on us out of nowhere! Any just barely halfway competent analyst saw this coming years ago. They act like it just happened out of thin air with no warning whatsoever. They are just showing their usual face of incompetence as well as bald-faced lying.

[Sig]

9 hours ago, ukrules said:

 

Not really, these massive NASDAQ listed companies have already found a 100% compliant and legal way to purchase long term Bitcoin holdings using the law as it stands right now.

 

That's why they're doing it, and Michael Saylor (CEO MSTR) just gave the millions of dollars and many months of legal research that his company paid for away to anyone who wants it.

 

It may take a few months to follow the Saylor guidelines, so inside a couple of months time I think we're going to see something unlike anything that's came before.

 

Buckle up - things are about to get very real.

 

These people have a habit of giving endless reasons for Americans to move their assets out of the country and out of the control of the manipulating U.S. controllers and their cohorts. Any American doing anything with cryptocurrency connected to any exchange that is under U.S. oversight and connected to any U.S. bank, is nuts.

[Heng]

It'll be about as effective as FATCA.   Annoying, but like US cruise lines that register their ships overseas, there are plenty of legal ways around US regs.... and you can do them all on your phone.   

Edited February 16, 2021 by Heng

[Chivas]

On 2/15/2021 at 4:02 AM, Surelynot said:

OMG...yes......nightmare. Gave up on some......now with Coinbase/Ledger

My Coinbase account has been suspended for 4 weeks now awaiting its 3rd "review".....they finally responded to the 4th email claiming they'd expedite the process. Thats was 13 days ago

Absolute fxxxxxx joke of a company

I have in addition a Revolut account and whilst they're not "full service" for want of a better expression for Crypto they are in fact light years in front of Coinbase

 

Absolute roasters....

[from the home of CC]

On 2/15/2021 at 8:47 AM, Mike Rodik said:

was bitcoin not created to not have influence of big mega corp for profits ?

 

what is next, your bank invest in Bit... it loses half of it worth and ask for a government bailout?

I always looked at it as a way to wash money and buy/sell illegal items without discovery (with the enhanced encryption) - I guess it will be right at home with the big banks and financiers..