Hester Peirce Pushes For Defined Rules Around Crypto Custody

Looming Uncertainty

Peirce’s remarks underscored the persistent uncertainty within the digital asset sector, particularly around how custody of cryptocurrencies should be regulated.

Source: Hester Peirce

Commissioner Peirce likened the current regulatory environment to a game of “the floor is lava”, a metaphor capturing the hesitance and trepidation firms feel when approaching cryptocurrency due to unclear rules. Engaging directly with crypto assets, she implied, is treated as stepping into danger.

‘Turn On The Lights’

Calling for transparency, Peirce urged regulators to “turn on the lights” by establishing a robust and straightforward framework for digital asset custody. Her message was straightforward, namely that the country needs to establish clearer rules that would help mitigate risks and reduce the fog of compliance uncertainty.

Responses from the crypto community and financial sector were mixed, blending cautious optimism with measured doubt. Nonetheless, Peirce’s comments struck a chord as a potential turning point, reinforcing the urgent demand for structured oversight that could unlock broader institutional participation.