- CEO of blockchain association suggests how the U.S Congress can create an open process of crypto regulations
- The chief policy officer for the blockchain association states that neither SEC nor CFT has full authority to regulate crypto
- The congress position on crypto is not a great one due to the collapse of FTX
The U.S. has been able to settle with the regulations regarding stablecoins in the country. However, regardless of the conclusion, several regulators still feel unsatisfied due to the chaos the collapse of FTX caused the crypto industry.
Kristin Smith, the CEO of the blockchain association, suggested that the United States congress take complete control over the crypto legislation while also making it an open process to allow the entire crypto marketplace to be viewed comprehensively.
In an interview with Bloomberg, Kristin suggested that the crypto industry needs United States lawmakers to lead the crypto legislation, regardless of how slow the process gets with the existence of regulators in the interim.
The CEO of the blockchain association also noted that even with regulators moving with haste, the progress on legislation is all happening behind closed doors, which suggests a vital need for more of the industry’s involvement in an open process which would also be inclusive of the Congress.
Many people in Congress who had close ties with the former CEO of the now-collapsed exchange, FTX, were burned and betrayed over the platform’s downfall in late 2022, putting Congress’s conversation on cryptocurrency in a difficult position.
However, Congress is working on the stablecoin regulation, which will happen very shortly, and the regulation has come to a close fruition. Still, it was cut short due to the collapse of FTX, which had a hand in disrupting several things in the crypto space.
Another reason the process is slow is that crypto risks are worlds apart from traditional financing services. Hence, regulators must spend more time examining market regulations and ensuring that the laws are tailored to fit those risks.
Kristin Smith suggested that stablecoin and market side regulations should be held at a higher priority than the focus on legislating crypto-bound criminal activities, with the excuse that public ledgers help more with transparency than is available in the world of traditional financing.
This interview with Bloomberg comes shortly after the blockchain association’s chief policy officer Jake Chervinsky tweeted that no matter how many enforcement actions were brought by the Securities and Exchange Commission and commodity futures trading, they were bound by the reality of how legal they were, with neither of them having the full authority to regulate crypto comprehensively.
Conclusion
Suppose the suggestions listed by the CEO of the Blockchain association are taken. In that case, it will go a long way in helping secure protection for the crypto space while also allowing for transparency.
