Blockchain Association’s policy expert says that, despite efforts to enforce cryptocurrency with enforcement actions, the United States financial regulators are “bound by legal reality” and Congress will decide what regulations should ultimately be in place. cryptocurrencies.
Chief policy officer Jake Chervinsky contributed his thoughts to the lengthy Twitter conversation about the current state of crypto policy. It took place on February 14.
He pointed out that the Securities and Exchange Commission and Commodity Futures Trading Commission did not have the capacity to oversee all aspects of cryptocurrency.
Chervinsky thinks that it is unlikely that there will be a compromise on crypto legislation because of the ideological divide between Senate Democrats and House Republicans. He claimed that the Securities and Exchange Commission and Commodity Futures Trading Commission had outstripped their power in an effort “get things done without Congress.”
Chervinsky appealed for sector members to remain calm in the face the SEC’s recent actions. He called them “crypto’s biggest adversary.” Chervinsky used the SEC crackdown on staking as an example.
Hester Peirce (SEC Commissioner) publicly criticized the February 9 settlement between Kraken and the SEC. It forbade Kraken to ever sell staking services in the United States.
Peirce stated his disagreement with the majority opinion on February 9th in a statement. In it, he stated that enforcement of growing businesses is not an effective or equitable way to govern them.
Chervinsky proposed that litigation be used by cryptocurrency businesses to press for the appropriate legislation. Chervinsky claimed that the court plays an important role in shaping policies that have been “ignored.”
Coinbase, which is a cryptocurrency exchange and subject to an SEC investigation, is also being investigated. It is similar to the one that led Kraken to settlement.
Coinbase CEO Brian Armstrong and co-founder of Coinbase believes it would be disastrous if the United States eliminated staking for crypto currencies.
Armstrong claimed that Coinbase’s staking services were not securities in a tweet dated 02/12/2012. He also stated that he would “gladly defend” this case in court if necessary.
Judges’ decisions in important cases set new standards for law. If such a case is brought to court and the judge decides that Coinbase staking services are not securities, other cryptocurrency businesses in a similar position to Coinbase can use the precedent as part their defense.