The Policy Expert for the Cryptocurrency Advocacy Group Blockchain Association Expresses that Despite Attempts to Police Cryptocurrency through Enforcement Actions, United States Financial Regulators “Are limited by legal Reality,” and Congress will Ultimately Conclude what Regulations Should be set up for Cryptocurrencies.
Jake Chervinsky, the Chief Policy Officer of the Organization, Contributed his considerations to a lengthy Twitter Conversation on the Topic of the Ongoing Status of Crypto Policy on February 14.
He Mentioned the Objective fact that the Securities and Exchange Commission as well as the Commodity Futures Trading Commission “Don’t can Completely Oversee Cryptocurrency.”
Given the Philosophical Split that Exists between the House Conservatives and Senate Democrats, Chervinsky is of the assessment that a compromise on the crypto legislation is “far-fetched.” He said that the Securities and Exchange Commission and the Commodity Futures Trading Commission had Surpassed their Abilities in an effort to “Finish Things” Without Congress.
Chervinsky Issued a Request for the Sector to Maintain its Composure Following the Recent Whirlwind of Action from the SEC, which he Referred to as “Crypto’s Biggest Rival.” As an Example, Chervinsky Cited the SEC’s Crackdown on Staking Services.
Hester Peirce, the Commissioner of the SEC, Criticized the Settlement that the SEC reached with the Exchange on February 9.Peirce expressed his Disagreement with the majority assessment in a Statement dated February 9, in which he said that regulating a developing business via Enforcement “Is neither an Effective or Evenhanded way of Governing” The Industry.
According to Chervinsky, litigation is one Method the business may press for appropriate legislation. Chervinsky said that the court plays a vital role in impacting policy that has been “Disregarded.”
Coinbase, A Cryptocurrency Exchange, is also the Subject of a SEC investigation that is similar to the one that Prompted Kraken’s Settlement.
A more Stronger position has been taken on by Coinbase CEO and Co-Founder Brian Armstrong, who believes that it would be Disastrous for the United States to get rid of Staking for Cryptocurrencies.
In a tweet dated February 12, Armstrong Contended that Coinbase’s Staking Services are not Securities and said that he would “Readily defend this in court if it were essential.”
The Decisions that Judges make in Significant cases lay out new Guidelines in the law. If such a case were to be taken before a court and the Judge Concluded that Coinbase’s Staking Services didn’t Qualify as Securities, then other Cryptocurrency Businesses who are in a Situation Comparable to Coinbase’s may use the Point of Reference as part of their Defense.