During her address at the annual SEC Speaks Conference, Commissioner <a href="https://www.cryptoknowmics.com/news/sec-commissioner-hester-peirce-says-xrp-might-not-be-a-security/" target="_blank" rel="noopener">Hester Peirce</a>, also known as 'Crypto Mom,' criticized the SEC's guidance on crypto custody and emphasized the need for increased public interaction.
<h2>Concerns Over Crypto Custody Guidance</h2>
[embed]https://twitter.com/iampaulgrewal/status/1775342634627686516[/embed]

Peirce raised concerns about the SEC's Staff Accounting Bulletin 121 (SAB 121), labeling it a "pernicious weed" that hampers investor protection and stifles experienced banks and broker-dealers from entering the crypto custody business due to its capital implications. She highlighted the potential risks associated with custodial failures, urging for a reevaluation of the guidance.
<h2>Calls for Public Engagement</h2>
Peirce lamented the SEC's diminishing engagement with the public, particularly in emerging technology sectors like crypto. She underscored the importance of open communication, clear guidance, and fostering responsible innovation. Peirce advocated for restoring trust and facilitating constructive dialogues to address regulatory challenges effectively.
<h2>Support for Advisory Committee</h2>
Coinbase chief legal officer Paul Grewal echoed Peirce's sentiments, endorsing her proposal to establish an advisory committee comprising chief compliance officers. This committee aims to enhance understanding of regulatory rules and their practical implications, fostering collaboration between regulators and industry stakeholders.
<h2>Looking Ahead</h2>
Peirce's remarks signal a growing debate within the regulatory landscape regarding crypto custody and public engagement. As stakeholders push for clarity and collaboration, the future of crypto regulation remains a focal point for discussion and potential reform.

<em><strong>Disclaimer:</strong></em>The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

SEC Commissioner Hester Peirce Criticizes Crypto Custody Guidance

Commissioner Hester Peirce voices concerns over the SEC's approach to crypto custody and calls for more public engagement and clear guidance.

Sujit received his Bachelors in Science from the LNMU Darbhanga. He is currently working as a Content Strategist. He has more than three years of professional experience in information systems, security policies, technologies, and Cryptocurrency. He has published 6 books in the area of information security and assurance. He has published more
than 50 research articles in leading journals Regarding the Latest and Breaking Crypto News and updates. His research interests include access control, computer forensics, Digital Marketing, Web development, business hacks, player experience, and virtual storytelling.

SEC Commissioner Hester Peirce Criticizes Crypto Custody Guidance

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