Hester Peirce, a commissioner at the United States Securities and Exchange Commission (SEC), has criticized her agency's guidance on crypto custody, calling for more interaction with the public. Peirce expressed her concerns at the annual SEC Speaks conference, stating that a "harmful rule" had emerged in the SEC's "internal policy guidelines."

Peirce's criticism was directed at Staff Accounting Bulletin 121 (SAB 121), which prohibits banks from holding crypto assets in custody for clients. Meanwhile, Gurbir Grewalr of the Division of Enforcement at the SEC, has refuted criticism that the SEC is making up rules on crypto as it goes along.

Grewal emphasized that the crypto industry has attempted to circumvent the SEC's jurisdiction by continuing to operate in the United States. He also reiterated that the SEC's standard for determining whether an asset is a security under the Howey test has been consistently applied.

The SEC is currently seeking public comments on proposed rule changes that would allow the listing and trading of shares of three spot Ether exchange-traded funds (ETFs) on exchanges.

The European Union is considering a ban on non-decentralized protocols, according to the Markets in Crypto-Assets Regulation (MiCA). The regulatory framework that governs digital assets within the EU requires the European Commission to evaluate the decentralized finance market and the feasibility of specific regulations for the sector by Dec. 30.

The report explores how decentralized systems should be regulated, particularly those without a clear issuer or service provider. The regulation of crypto-asset lending and borrowing, a core activity within the DeFi space, is a significant aspect of this assessment.

Argentina has mandated that crypto firms register with the country's government as part of reforms to its Anti-Money Laundering and Combating the Financing of Terrorism laws. The Monetary Authority of Singapore (MAS) has announced that it will implement amendments to the country's Payment Services Act (P.S. Act) to expand the scope of regulated services related to digital payment token (DPT) service providers.

The regulator will bring several activities within the scope of the P.S. Act, including providing custodial services for DPTs, facilitating token transfers and exchange, and the facilitation of cross-border money transfers. The new updates will allow MAS to include additional requirements for DPT service providers.

SEC's Crypto Guidance Criticized by Commissioner Peirce, Grewal Defends SEC's Stance: Law Decoded"