US SEC Commissioner: US cryptocurrency regulation is like playing the game "The Floor is Lava" in the dark, now we need to "turn on the lights"

a commissioner of the U.S. Securities and Exchange Commission (SEC), said at the SEC's "Know Your Custodian" roundtable that U.S. financial institutions are playing a game of "the floor is lava" when dealing with cryptocurrency businesses. Peirce explained that SEC registrants have to treat activities related to cryptocurrencies like they are playing "the floor is lava", the goal being to jump from one piece of furniture to the next without touching the ground, except in this case, touching cryptocurrency directly is the lava. She said, "The Washington, D.C. version of this game is our approach to regulating crypto assets, especially crypto asset custody. Due to unclear regulatory rules, companies wanting to be involved in cryptocurrencies must avoid directly holding cryptocurrencies. Hester Peirce stated, "Now is the time for us to find a way to end this game. We need to turn on the lights and build some sidewalks over the lava pit."