Kristin Smith, the CEO of Blockchain Association- a leading crypto industry nonprofit in U.S., suggests that United States Congress should take hold of crypto regulations and make it a more “open process” by weighing all aspects of the market thoroughly.
Crypto Regulation Should Be Conducted More Transparently
During a recent interview with Bloomberg on Feb. 22, Smith expressed his stance that the industry needs lawmakers to initiate crypto regulation in order for it to come about; however, he understands this may be a drawn-out process, and thus regulators have been taking interim steps towards legislation. He went on to explain how although regulators have acted quickly, any progress made is occurring “behind closed doors,” so it’s imperative there is more engagement from those within the industry during an open legislative process – one which would involve Congress.
According to Kristin Smith, the problem concerning regulators driving legislation with enforcement actions and settlements is due to “very specific facts and circumstances.” This has caused a challenging situation for Congress right now as many people in Washington D.C. who were close confidants of former FTX CEO Sam Bankman-Fried are feeling “betrayed” following the tumble of the cryptocurrency exchange back in November 2022.
Market and Stablecoin Regulation Should Take Priority Over Criminal Activity
Kristin Smith is confident that laws surrounding stablecoins will soon be enacted in the U.S., claiming Congress has been investigating this matter since 2019, and most of the “work has already been done.” She expressed that it was almost approved last year before FTX collapsed and believes digital currency risks stand apart from traditional fiscal services, thus needing regulators to further contemplate crypto regulations specific to these perils.
According to Smith, legislation of stablecoin and market-side regulations should be prioritized over focusing on crypto-related crime as public ledgers make the system more transparent compared with traditional finance.
On February 15th, the Blockchain Association’s chief policy officer Jake Chervinsky expressed via Twitter that regardless of how many enforcement actions are taken by the SEC and CFTC, they remain limited in their capacity to regulate crypto due to legal restrictions. He stated that neither commission has had full authority over this domain since its inception.
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