Hester Peirce, The Securities and Exchange Commission’s Affectionately Known “Crypto Mom,” Calls For Clear Regulations On Cryptocurrencies

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, BNY Mellon and Mastercard embrace the alternative asset class,” reported Reuters.  

Peirce, 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 cryptocurrencies.  

Crypto-Mom Peirce views the new Biden Administration as an agent of change for regulations, stating, “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 President 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, Peirce said that 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.”