By Jack Kelly
Hester Peirce, a commissioner at The Securities and Exchange Commission, called for a “clear cryptocurrency regulatory regime,” as it is “urgently needed as major companies like Tesla Inc, BNY Mellon Corp, and Mastercard Inc embrace the alternative asset class,” reported Reuters
Pierce, affectionately known as “Crypto Mom” by Bitcoin enthusiasts, has been a big proponent for regulators to enact rules that would make it clear what actions could be taken in regards to the marketing, purchasing, selling, and trading of the array of different crypto currencies.
Crypto Mom Peirce views the new Biden Administration as a change agent for regulations saying “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.”
Recently Tesla’s Elon Musk tweeted about a little-known crypto and the value skyrocketed. Musk also said his company, Tesla, invested roughly $1.5 billion in cryptocurrency. Other big-name corporations shared their interest in this space. The well-established BNY Mellon announced that it would allow clients to hold, transfer, and issue digital assets. Mastercard said it would open up its network to certain cryptocurrencies.
Pointing to the recent battle royale between Reddit-driven day traders and short-selling hedge funds, along with Robin Hood’s ceasing trading in stocks popular with the social media trading crowd, has brought renewed attention to Wall Street’s questionable activities. Some people claim that regulators have not been empowered during the last four years under former Donald Trump and there could be a myriad of other issues bubbling up from beneath the muck. This would call for enhanced investigations and examinations. The SEC recently reported that it will empower supervisors to take swift actions based on their own decision-making process if they believe there is foul play in the marketplace.
Regarding the recent trading frenzy, which will be the subject of a congressional hearing, Pierce said The SEC is examining the “gamut” of issues including market volatility, the role of retail brokers, and how the post-trade market functioned. She added, “To see new investors participating in the markets is a good thing and of course we want them to be educated and skeptical.”