According to Jake Chervinsky, Chief Policy Officer at the Blockchain Association, the U.S. Congress is the only entity with the power to set regulations for the cryptocurrency industry. This comes after the Securities and Exchange Commission (SEC) launched a series of enforcement actions this month. Chervinsky said the SEC and other regulatory bodies are bound by the legal reality that Congress dictates.
See related article: Ripple gets support from Blockchain Association in XRP lawsuit against SEC
Fast facts
- The SEC and Commodity Futures Trading Commission lack the mandate to comprehensively control the crypto space, Chervinsky noted in a Twitter thread on Tuesday.
- Chervinsky stated 2022 could be the “worst year in crypto history” due to the collapse of FTX.com, a Bahamas-based crypto exchange, which adversely impacted the industry’s reputation and prompted skeptics to press for control.
- The ideological gap between House Democrats and Republicans has hindered the debate on digital asset regulations. As a result, agencies have had to “stretch their authority beyond recognition to take action without Congress,” even if it is not allowed by law.
- The SEC is “crypto’s chief antagonist,” Chervinsky said, and has been implementing regulations through enforcement. Two recent examples are crypto exchange Kraken’s US$30 million fine and Paxos Trust Company’s suspension of the Binance USD (BUSD) stablecoin.
- Chervinsky suggests appealing to Congress, educating it on the industry, and utilizing the courts to litigate against regulators to set legal precedents. He remains hopeful about the future of crypto in the United States.
See related article: Binance.US pulls out of Blockchain Association, sets up own influence lobby
