According to ChainCatcher and Cointelegraph, SEC Commissioner Hester Peirce stated at the SEC "Know Your Custodian" roundtable that U.S. financial institutions are playing a "floor is lava" game when dealing with cryptocurrency businesses.
Peirce explained that SEC registrants have to treat cryptocurrency-related activities like a "floor is lava" game, aiming to jump from one piece of furniture to another without touching the ground, except here, directly touching cryptocurrency is the lava. "She said: "The Washington D.C. version of this game is our regulatory approach to crypto assets, especially crypto asset custody. Due to unclear regulatory rules, companies wanting to participate in cryptocurrency 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 walkways over the lava pit,"
