First, SEC Commissioner Hester Peirce raised alarm around the lack of clarity in existing crypto regulation in the US. Peirce recommended that the SEC issue clear rules around custodianship and classifications of assets for crypto assets. How else are we to find long-term and protect growth of the U.S. crypto market without these evident guidelines?

Peirce reiterated the need for regulations to recognize differences between types of digital assets. On the panel, she focused on the need for custodial answers that comply with legal and regulatory requirements.

Mark Uyeda, the third Republican SEC Commissioner, echoed Peirce’s concerns about the current regulatory confusion. Uyeda proposed that the SEC should broaden custodial options, potentially including state-chartered limited-purpose trust companies as custodians for crypto assets.

This is not the first time Peirce has expressed strong criticism of the SEC’s previous leadership, led by Gary Gensler. She claims that their activities created serious regulatory chaos. Atkins agreed, blaming the previous administration for creating a climate of uncertainty.

Peirce and Atkins both expressed the desire for a more well-outlined regulatory structure. Indeed, they think it’s critical to create a clear environment that encourages the development of the industry around crypto while still protecting the investing public.

Even SEC Commissioners— Peirce included —find it hard to tell what’s a security and what isn’t. They are struggling to figure out which entities can serve as qualified custodians for crypto assets.

Peirce’s colorful metaphor described the jam in which investment advisers find themselves.

"the floor is lava" - SEC Commissioner Hester Peirce

She leveraged this analogy to underscore the angst that investment advisers feel. They can never seem to clearly answer what is a security, and who can be a qualified custodian of crypto assets.

Especially as more firms enter the crypto space, Peirce has seen the demand for clear custodial solutions increase. At the same time, these solutions must meet legal and regulatory requirements.

Atkins was optimistic about the potential of blockchain technology to create great efficiencies, reduce risk, and improve transparency.