© Reuters. FILE PHOTO: Commissioner Peirce attends an open meeting of the US Securities and Exchange Commission to propose a change to the definition of an "accredited investor" in Washington
By Chris Prentice and Katanga Johnson
WASHINGTON (Reuters) – Clear regulatory system for cryptocurrencies is urgently needed as big companies like Tesla (NASDAQ 🙂 Inc, BNY Mellon (NYSE 🙂 Corp and Mastercard Inc (NYSE 🙂 are the alternative asset class, a top Securities and Exchange Commission , assume (SEC) official said.
Hester Peirce, a Republican commissioner for the agency, also told Reuters in an interview that it was too early to draw political conclusions from a "Reddit rally" GameStop Corp. (NYSE 🙂 and other stocks, but it was "wonderful" that a new generation of investors could enter the market.
Dubbed the “crypto mother” by crypto enthusiasts for her supportive stance on the asset class, Peirce has long campaigned for regulators to put in place clear rules that allow crypto assets to thrive without fear of breaking the law.
"It is not only that clarity has been demanded for some time and that a new administration offers an opportunity to take a new look at it, but it is also a moment when it appears that others are also on the same page Market take a fresh look, "she said.
reached record highs this month after electric car maker Tesla invested $ 1.5 billion in the cryptocurrency and BNY Mellon helped customers hold, transfer and spend digital assets. Mastercard also said it would open its network to some cryptocurrencies.
"This increases the urgency that we take action in this area to create more clarity," said Peirce.
The market was in crisis last month when Reddit users trading on low-cost retail platforms banded together to raise the prices of GameStop and other stocks and to squeeze hedge funds that had bet against those stocks.
The resulting volatility triggered massive margin calls from "clearing" houses guaranteeing trading and prompting several retail platforms to suspend purchases of the affected securities.
The incident sparked outrage among lawmakers on both sides of the aisle. Vlad Tenev, CEO of the trading app Robinhood, Ken Griffin, CEO of the Citadel LLC hedge fund and others involved in the saga will testify before Congress Thursday.
The SEC is studying the "breadth" of issues such as market volatility, the role of retail brokers, and how the post-trade market works, Peirce said.
"It is a good thing to see new investors enter the markets and of course we want them to be educated and skeptical," she said, adding that a wide range of market participants could actually help improve pricing .
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