The head of the SEC encryption working group calls for easing regulations on digital assets, emphasizing the establishment of a standardized approval framework.

On June 6, it was reported that Hester Peirce, head of the crypto working group of the U.S. Securities and Exchange Commission (SEC), called for a more relaxed regulatory approach to digital assets at the third annual meeting on emerging trends in asset management held on June 5. She pointed out that there are efficiency issues in the current approval process, and used the spot Bitcoin ETF approval process as an example to emphasize the need to establish a standardized approval framework to reduce the compliance burden on the industry. Peirce specifically mentioned that the custody system needs to be clarified urgently, and the legal status of state-level chartered trust institutions as digital asset custodians has not yet been clarified. With the recent policy adjustments of the Office of the Comptroller of the Currency and other institutions, she expects more crypto asset custody options to emerge and urged the SEC’s investment management department to issue relevant guidance as soon as possible.

In terms of investor protection, Peirce suggested reassessing the “qualified custodian” system and proposed that regulatory principles more aligned with the characteristics of digital assets should be developed. She stated that a clear regulatory framework is crucial for promoting the integration of traditional finance and blockchain innovation, and the SEC needs to adopt a more forward-looking regulatory posture.