Regulators and cryptocurrencies are an eternal story of the struggle between the iron grip of the law and the freedom of digital assets. However, even among the guardians of the law, there are those who no longer want to put up with protracted procedures. SEC Commissioner Hester Peirce, known for her innovative statements, once again criticized the existing system.

In her recent speech, the commissioner clearly outlined the need to review outdated approaches to regulating the crypto market. She stated that regulators should become partners in innovation, rather than remain an obstacle to development.

At the Third Annual Asset Management Conference, Pierce made a compelling case for reconsidering the SEC’s current regulatory policy on cryptocurrencies. The story of approving a Bitcoin ETP has become something of a comedy. The SEC has been refusing for years, dragging its feet, until the court literally forced it to change its mind, which demonstrates systemic shortcomings in the regulator’s work.

The issue of digital asset custody is especially relevant. Current regulations, including the Investment Company Act, do not take into account the specifics of cryptocurrencies, which creates difficulties for professional market participants. The Commissioner expressed hope that the repeal of Accounting Bulletin No. 121 and subsequent clarifications from banking regulators will help remove these barriers.

Pierce emphasized that regulation should pursue two goals: protecting investors and stimulating innovation. To do this, the SEC needs to reconsider the outdated concept of “qualified custodians” and develop new rules that are consistent with the specifics of digital assets.

In conclusion, she called on colleagues to be flexible. “If we stick to the old ways, much of the crypto market will go underground,” Pierce said. “Balanced regulations will help integrate digital assets into the legal field and protect investors.”