A string of hostile actions by U.S. regulators against the crypto industry was predictable after 2022, but it can be dealt with, said Jake Chervinsky, director of policy for the Blockchain Association.
1/ After a streak of hostile moves by US regulators, with rumors of more to come, fears of a crypto crackdown have never been higher.
It may be tough, but we can chart a path through it.
Let’s discuss the state of crypto policy: what’s happening, why, and what we do next 🧵
— Jake Chervinsky (@jchervinsky) February 14, 2023
According to the expert, the series of negative events that crowned the collapse of FTX dealt a severe blow to the reputation of the industry. Chervinsky recalled that for many politicians in Washington, it was the founder and head of the exchange who was the “face” of the industry. The alleged scam by Sam Bankman-Freed has changed the attitude of politicians towards cryptocurrencies in many ways.
According to Chervinsky, influential government bodies like the Financial Stability Board and the President’s Working Group have explicitly called for the development of uniform rules for the industry by Congress. In many ways, this did not happen as a result of ideological differences between the Republican-controlled House of Representatives and the majority of Democrats in the Senate, the lawyer is sure.
He believes that in this situation banking and market regulators have taken on a more active role. Chervinsky highlighted SECwhich he considers the main opponent of cryptocurrencies among US departments.
The expert believes that the Commission will continue its policy of tough measures against industry participants. The recent case with the Kraken exchange, which settled SEC claims against its staking service through a $30 million payout, will not be the last, Chervinsky said.
He noted that the community has the opportunity to resist the strategy of the regulator. To do this, you must take the following measures:
- launch public discussions, to which departments will be forced to listen;
- sue agencies if they exceed their powers or violate constitutional norms;
- promote education for members of Congress so that the majority of legislators get the right idea about cryptocurrencies;
- help congressmen with legislative proposals;
- look for an ally in the form of the judiciary, since in the case of digital assets it is about protecting civil liberties.
“There is a difficult road ahead, but I am more optimistic than ever about the future prosperity of the crypto industry in the US,” Chervinsky concluded.
21/ The path forward is challenging, but I’m as optimistic as ever that crypto will flourish in the USA.
If you’re a US crypto company looking to help, reach out to us at @BlockchainAssn.
If you’re anyone who cares, consider donating to @fund_defi and @coincenter.
✌️
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— Jake Chervinsky (@jchervinsky) February 14, 2023
Recall that in January, the administration of President Joe Biden called on Congress to “intensify efforts” regarding the oversight of the digital asset market.
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