United States Securities and Exchange Commission (SEC) commissioner Hester Peirce revealed the US may borrow Bermuda’s regulatory framework for digital assets. Pierce, who is a republican member of the SEC with libertarian leanings, made her remarks during the SUSS convergence Forum in Singapore last week.
Peirce said that the SEC has been grappling with the question of how to regulate digital money for years. Therefore, they are looking forward to learning more from regulatory frameworks in Switzerland, Malta, Hong Kong, France, Bermuda, and Thailand. According to her, these countries have laid the regulatory groundwork for the rest of the world.
“We also can continue to learn from one another to fill the gaps in our own regulation and borrow, when appropriate, from frameworks developed and tested in other places.”
Bermuda, for example, is renowned as a tax haven. Also, it has adopted crypto-friendly policies. Just recently, Goldman Sachs-backed Circle moved almost 100% of its exchange operations to Bermuda due to continued regulatory uncertainty in the US. The company obtained a full Digital Assets Business Act license in the Caribbean Island for its cryptocurrency exchange Poloniex on the 22nd of July, 2019.
“I look forward, for example, to learning more about Bermuda’s custody framework to see if we can draw from it as we think about how our custody rules apply in the crypto context… Bermuda is one of the only jurisdictions to address the custody question in detail. In conjunction with a regulatory regime for digital asset businesses, the island also released draft guidance for crypto custodial services, which addresses such difficulties as how to store private keys for hot and cold storage while preserving necessary liquidity, what safeguards should be in place to prevent unauthorized access, and how to frame internal audit of transactions to ensure their integrity.
These ‘laboratories of regulation’ operated by our international counterparts have me thinking about possible paths for the U.S. to become more welcoming of crypto innovation.”
Read her full speech here.
image source: WSJ
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