Regulatory pressure is mounting in the US, and more politicians are questioning whether the current framework is adequate.
One personal opinion written for the Wall Street Journal Former SEC Chairman Jay Clayton and former Under Secretary of the Treasury, Brent Macintosh, have defended the United States’ current regulatory mechanism regarding crypto and warned that excessive rule-making could stifle innovation.
The discussions come as cryptocurrencies are thrown into the regulatory spotlight once again. Two serious ransomware attacks in the US in the weekends, Two Senators Discuss Possibility of Banning Cryptocurrencies As a solution to ransomware attacks.
Clayton served as SEC chief from May 2017 to December 2020, stating that the agency did not regulate bitcoin because the asset was declared no security before taking his position as its chief. Clayton has remained in the industry since his departure from the SEC and currently Advice of One River Asset Management on Cryptocurrencies.
Mackintosh was the Under Secretary of the Treasury for International Affairs from September 2019 to January 2021, previously serving as General Counsel to the Treasury Department between 2017 and 2019.
The pair emphasized the challenge of finding a workable regulatory balance that ensures basic consumer protections without hindering the growth of the crypto industry, cautioning that praising existing guidelines could easily expose the sector to excessive or inadequate regulatory oversight. may be subject to:
“The current regulatory framework provides the tools to address many of the risks of new technologies without delivering on their promises.”
He advised policy makers to base their efforts on key objectives Existing Financial Rules. These include financial stability and the prevention of fraud and illegal activity.
The pair concluded that a coordinated approach is needed that ensures the US maintains its role as a financial leader:
“A quick, coordinated approach to regulatory clarity that builds on our existing knowledge base will empower responsible innovation and ensure that the US financial system continues its leadership role in the creation of capital, the provision of credit, and the maintenance of sustainability.” on which the modern global economy depends.”
Those in power, along with the Treasury Secretary, Janet Yellen, appear to be striving for a heavy-handed approach, stating that Crypto abuse a growing problem in February.
SEC Chairman Gary Gensler also Hints at more regulatory oversight for US crypto exchanges at the beginning of May.