SEC’s Hester Peirce Compares U.S. Crypto Rules to ‘Floor is Lava’ Game, Urges Clearer Regulations
SEC Commissioner Hester Peirce criticized the current state of crypto regulation in the U.S., comparing it to the children’s game “the floor is lava,” where firms must avoid direct contact with crypto assets while navigating unclear regulations. Speaking at the SEC’s “Know Your Custodian” roundtable on April 25, Peirce explained that firms engaging in crypto must jump from one poorly defined regulatory space to another. She pointed out that the regulatory landscape is uncertain, with firms unsure of which crypto assets qualify as securities and whether activities like staking or voting rights could trigger violations.
Peirce’s analogy illustrated the confusion that investment advisers face when determining what…
