Kristin Smith, the CEO of the Blockchain Association, a Washington DC-based trade association representing more than 100 of the industry’s leading companies, has called for more transparency and openness in the regulatory process for digital assets such as cryptocurrencies. She said this during an interview with Bloomberg today, February 22, 2023.
According to Smith, although the regulation of cryptocurrencies is progressing rapidly, the issue is that it lacks transparency. She emphasized the need for U.S. lawmakers to step up and take charge of crypto legislation instead of leaving it solely to regulators.
The White House has been working on stablecoin regulation since 2019 and there have been hearings from the Senate and Congress. Kristin is more optimistic that stablecoin regulation is going to happen in the United States.
Smith believes that the risks associated with cryptocurrency are quite different from traditional finance risks, so there needs to be a proper regulatory framework tailored to fit the sector. She said the authorities could work with companies like Chainalysis that monitor money laundering and other illegal activities on blockchains.
Jake Chervinsky, another member of the Blockchain Association and its Chief Policy Officer, in a Twitter thread, highlighted the hostile actions of US regulatory bodies towards the crypto industry. He believes that 2022 was a bad year for cryptocurrency, and the FTX crash further worsened things.
He also said that Congress is the appropriate body to decide the state of regulation but the Securities and Exchange Commission (SEC) and Commodity Future Trading Commission (CFTC) have stepped into it. He reiterated that no matter how much enforcement the CFTC or SEC does, it is only legal if Congress approves it.
Chervinsky also provided some insight on how to resist the enforcement “attack” and promote a better policy for digital assets. He mentioned legalisation as one of them, suggesting good ideas for laws that can work for crypto. Chervinsky expressed optimistic that crypto will continue to thrive in the United States despite the current challenges.
The Blockchain Association is a non-governmental organization that promotes a friendly environment and innovative policies for the digital asset economy. It has nearly 100 members, including investors, who collectively work towards the widespread adoption of digital assets.
The United States Securities and Exchange Commission (SEC) recently began a regulatory crackdown on the crypto industry, and its chairman, Gary Gensler, sent a clear message to U.S. crypto firms to comply with laws and regulations like other firms. This “war on crypto” has led to a $32 million loss in the crypto market within the first two months of 2023.
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