SEC Official Calls For Urgency Of Crypto Regulations As Institutional Adoption Rises

It is no secret that firms such as Tesla and Mastercard are gradually moving towards adopting cryptocurrency as their mainstay. However, SEC Commissioner Hester Pierce calls for the urgent need to invent and subsequently implement rules administering what should and should not be allowed regarding the still widely sporadic digital currency.

This makes a lot of sense, as not only does nearly everyone in most societies have access to a Mastercard or an equivalent, but online forms of payment have become the standard for many countries nowadays. Gone are the days of carrying ungodly amounts of paper in your wallets as the everyday consumer needs ease of access to their funds. Cryptocurrency is extremely useful for this purpose, but one should simultaneously understand the various risks associated with embracing a fully digitized form of currency as due to its relatively early stages, it can still be at risk to cyber-attacks, fraud, embezzlement, and more. Moreover, this is increasingly worrisome to many as employers may elect to pay their staff in cryptocurrency, as Elon Musk of Tesla recently hinted at.

All this thus culminates in the need for urgent rules and regulation of digital currency implementation on a global scale. Of course, Pierce does not want to ban the use of cryptocurrency outright nor limit the benefits it can bring, but she does desire to bring in the world of digital currency slowly in a way that does not violate any existing laws. To accomplish this goal, she has constantly advocated for explicit and comprehensible rules regarding the usage of cryptocurrency, going as far as requesting assistance from the U.S Securities and Exchange Commission towards solving this contemporary issue.

The need for clarity regarding a digital currency can perhaps be best summarized by the recent example of GameStop and how users on Reddit were able to band together to take advantage of the ambiguous nature of online trading and stock exchanges. This case highlighted the gaping hole in digital security and resulted in U.S regulators having to suspend trading relating to GameStop stock in an attempt to control and rectify the situation.

Pierce herself offered her take on the whole GameStop situation, going as far as actually supporting an entirely new generation of online traders for taking an interest in the world of digital currency and highlighting the need for updated policies regarding the world of online trading.