Peirce, Uyeda criticize chaos in the crypto storage on the second-roundtable

• SEC commissioner Peirce compares the navigation through unclear US crypto rules with "The floor is lava."
• Peirce indicates uncertainties in the classification of assets and compliance with staking requirements.
• Commissioner Uyeda demands broader options for the custody of crypto (e.g. state trustees).

Navigation by the regulatory environment for cryptocurrencies in the United States feels like a high -risk game of "The floor is lava".

In their clear contribution to a SEC roundtable discussion about custody rules, Peirce outlined a picture of companies that dared between poorly defined regulatory zones and are uncertain what is among them.

During the round tables "You know your storage" on April 25, Peirce, as companies that have to do with digital assets, described to act.

You have to constantly avoid direct contact with crypto assets that are considered potentially problematic, whereby there is a lack of clear guidelines that is considered a safe terrain.

"Companies that work in the crypto area have to jump from a poorly defined regulatory space to the next," she explained and emphasized the widespread uncertainty.

Important questions remain: What specific crypto assets are considered securities? Could activities such as staking or the exercise of voting rights unintentionally trigger regulatory violations?

This ambiguity, argued Peirce, lets companies rip off in the dark and hinder the ability of the market to develop under the existing framework.

Custody dilemma: Echos of uncertainty

Peirces criticism was particularly confronted with the confusion with the investment consultants with regard to the classification of assets and the identification of people who are qualified under SEC rules as storage for digital assets.

Colleague SEC Commissioner Mark Uyeda shared these concerns and expressly suggested that the SEC should expand the size of the permissible storage.

He advocated involving state-approved trust companies with a limited purpose as a qualified storage for crypto assets and argued that the currently close options restricted market growth.

Without adequate and clear custody solutions, Uyeda noticed, broker and alternative trading systems (ATS) in front of considerable hurdles to effectively enable crypto trading.

tailor -made rules for different assets

beyond the custody Peirce emphasized the need for regulations that recognize the inherent diversity within the digital asset ecosystem.

She spoke out against a "unit approach" and suggested that while some crypto assets need clearly qualified storage for investor protection, others could be better suited for self-negative arrangements.

Excessive rigid regulations, warned, risk to suffocate the innovation that is in decentralized transactions.

Peirce asked the SEC to develop a frame that recognizes and takes into account the unique characteristics of different types of crypto assets.

calls for clarity and collaboration

The demands for clearer rules were resonance at the former SEC chairman Paul Atkins, who also participated in the discussion.

Atkins spoke out for the creation of a clearer defined regulatory environment to promote the potential of the crypto market.

He emphasized the inherent advantages of blockchain technology, such as increased efficiency, reduced counterparty risk and increased transparency.

critically emphasized Atkins the importance of proactive cooperation between the SEC with market players and legislers to develop regulations that meet the constantly changing needs of the crypto industry.

Both Peirce and Atkins implicitly criticized the regulatory approach under the previous SEC leadership of Gary Gensler and indicated that this had contributed significantly to the current uncertainty.

Since the institutional engagement in the crypto area increases, Peirce again emphasized the urgent need for unmistakable custody solutions that meet strict legal and regulatory standards.

Without clear guidelines for the custody and the classification of different digital assets, she concluded, the US crypto market will continue to have difficulty expanding and fulfilling its potential.

The overarching message of the Commissioners was clear: A clear, nuanced and cooperative regulatory approach is crucial for the thriving of the crypto industry, while at the same time it is guaranteed to be guaranteed.