Peirce vs Grewal: Law Decoded

SEC Commissioner Hester Peirce has criticized the agency’s guidance on crypto custody and called for more public interaction. She referred to the Staff Accounting Bulletin 121 (SAB 121), which prevents banks from holding crypto assets on behalf of clients, as a “particularly pernicious weed” in the SEC’s “secret garden” of policy guidelines. Gurbir Grewal, the director of the SEC’s Division of Enforcement, defended the regulator against accusations of making up rules on the crypto industry. He claimed that companies in the crypto sector had made various attempts to avoid the SEC’s jurisdiction. Grewal did not address reports about the SEC potentially classifying Ether (ETH) as a security rather than a commodity. The SEC is seeking public comments on proposed rule changes for listing and trading three spot Ether exchange-traded funds (ETFs).

The European Union is considering banning non-decentralized protocols as part of its regulatory framework for digital assets. The Markets in Crypto-Assets Regulation (MiCA) requires the European Commission to evaluate the decentralized finance market and the feasibility of specific regulations for the sector. The evaluation will focus on the regulation of crypto-asset lending and borrowing, particularly within the DeFi space. Argentina’s securities regulator, Comisión Nacional de Valores, has mandated that virtual asset service providers register with the government in accordance with recommendations from the Financial Action Task Force. Service providers that fail to register will not be allowed to operate in the country. The impact of these requirements on businesses and users in Argentina is uncertain.

The Monetary Authority of Singapore (MAS) will amend the country’s Payment Services Act to expand the regulation of digital payment token (DPT) service providers. The amendments will bring activities such as custodial services for DPTs, token transfers and exchanges, and cross-border money transfers within the scope of the law. The MAS clarified that the regulations apply even when service providers do not hold the funds or when the money is not received in Singapore. The updates will enable the MAS to impose additional requirements on DPT service providers.

2 thoughts on “Peirce vs Grewal: Law Decoded

  1. More public interaction? As if the SEC doesn’t already have enough red tape slowing things down.

  2. It’s interesting to see different countries taking steps to regulate the crypto industry. This global effort will help establish best practices and protect investors across borders.

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