The recent boom in institutional interest in Bitcoin and cryptocurrencies might be a fresh sign that the market needs crypto regulations. SEC Commissioner Hester Peirce pointed out that the wide range of investors would also improve price formation.
Institutional Interest as the Long-Awaited Sign for Crypto Regulations
US Securities and Exchange Commission (SEC) commissioner Hester Peirce has said that there is a need for precise cryptocurrency regulation. According to a recent news report, the booming interest in digital assets by major companies like BNY Mellon, Tesla, Mastercard, etc., could be an unmistakable sign that authorities should probably develop crypto rules.
“That adds to the urgency of us taking some sort of action in this area to provide more clarity,” said Peirce.
Additionally, she addressed the so-called “Reddit Rally” on the GameStop case. She affirmed that it was too soon for any policy conclusions from the frenzy a couple of weeks ago. However, the Republican commissioner, named by crypto enthusiasts “Crypto Mom,” said that it was “wonderful” that a new generation of investors could participate in the market.
Peirce has had a positive outlook on the crypto market more than once before. For quite some time, she has talked of the necessity for regulators to create clear rules allowing crypto assets to thrive without the risk 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 commented.
Peirce also said that now, the SEC is exploring the range of issues, including market volatility, the part of retail brokers, and how the post-trade market functioned.
“To see new investors participating in the markets is a good thing, and of course, we want them to be educated and skeptical,” said the SEC executive. She also touched on the necessity of a wide range of market participants, which could improve price formation.
The Bitcoin and Institutional Investors Relationship
Commissioner Peirce’s words don’t come as a surprise as the world regularly sees how much a single individual investment could do to the price of a cryptocurrency.
Last week the market witnessed BTC’s new all-time high as the electric vehicle and clean energy company Tesla allocated $1.5 billion of its assets into Bitcoin. As CryptoPotato reported, one of the world’s largest public companies announced it had invested a significant amount in Bitcoin in January. Following, in a matter of hours, the digital asset’s price skyrocketed to nearly $50K.
Title: SEC’s Hester Peirce Urges for Crypto Regulations as Institutional Interest PilesSourced From: cryptopotato.com/secs-hester-peirce-urges-for-crypto-regulations-as-institutional-interest-piles/
Published Date: Mon, 15 Feb 2021 15:27:09 +0000
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