TechFlow news, April 27 — According to Cointelegraph, at the SEC's "Know Your Custodian" roundtable, SEC Commissioner Hester Peirce said that U.S. financial institutions handling cryptocurrency businesses are like playing a game of "the floor is lava" in the dark.
Peirce explained that registrants with the U.S. Securities and Exchange Commission have to treat crypto-related activities like playing "the floor is lava," jumping from one piece of furniture to the next without touching the ground—except in this case, direct ownership of cryptocurrency is the lava. "The Washington, D.C. version of this game is our regulatory approach toward digital assets, especially custody of digital assets," she said. Due to unclear regulations, companies wishing to engage with cryptocurrencies must avoid directly holding them.
Hester Peirce stated, "It’s time we find a way to end this game. We need to turn on the lights and build some walkways over the lava."
