WASHINGTON (Reuters) – A clear cryptocurrency management system is urgently needed as major companies such as Tesla Inc, BNY Mellon Corp. and Mastercard Inc adopt the other asset class, the chief executive of the Securities and Exchange Commission (SEC) said. .
Hester Peirce, the group’s Republican commissioner, told Reuters in an interview that it was too early to draw policy decisions from the Reddit Rally in GameStop Corp and other stocks, but it was “miraculous” that a new generation of investors able to participate in the market.
Supported by crypto enthusiasts such as the “Crypto Mom” because of its supportive stance on the asset class, Peirce has long advocated for regulators to create clear rules that would allow crypto assets succeed without fear of breaking the law.
“Not only have there been requests for clarity for some time and new administration provides an opportunity to take a fresh look, but it is also a moment where others in the market seem to be embracing. take a fresh look, ”she said.
Bitcoin hit its highest levels this month after electric car maker Tesla said it had invested $ 1.5 billion in the cryptocurrency and BNY Mellon said it would help clients acquire digital assets hold, move and take out. Mastercard also said it would open its network to some cryptocurrencies.
“That adds to the urgency of us doing something of the sort in this area to provide more clarity,” said Perce.
The market was crushed in a crisis last month when Reddit users who traded on low-priced retail platforms came together to raise the prices of GameStop and other stocks, pushing hedge funds to had bet against those sections.
This variability prompted marginal calls from promising “clean-up” homes promising trades, prompting a number of sales platforms to stop buying in the affected securities.
The incident sparked anger among lawyers on both sides of the aisle. Vlad Tenev, Head of Robinhood trading app, Ken Griffin, Head of hedge fund Citadel LLC and others involved in the saw will testify before Congress Thursday.
The SEC is examining a “gamut” of issues including market volatility, the location of retail brokers, and how the aftermarket was working, Perce said.
“It’s a good thing to see new investors participating in the markets and of course we want them to be educated and skeptical,” she said, adding that a wide range of market participants could help improve price formation.
Written by Michelle Price; Edited by Alistair Bell