The United States crypto industry is urging Congress to lead the way on crypto legislation and open up the process to the entire marketplace. Kristin Smith, CEO of the Blockchain Association, a prominent U.S. crypto industry nonprofit, expressed her views on the matter in a Feb. 22 Bloomberg interview.
Smith noted that regulators have taken on the role of leading the crypto legislative process, but it is occurring “behind closed doors” and the industry needs a more “open process” which would involve Congress. Despite their quick action, she believes that this approach only looks at “very specific facts and circumstances” of the industry.
The CEO commented that the situation has been complicated by the collapse of the cryptocurrency exchange FTX in November 2022. Many individuals in Washington D.C. who were close to the company have been left feeling “burned” and “betrayed.”
Smith believes that stablecoin regulation should be the focus of the U.S. Congress, with the “work” already being done since 2019. She noted that crypto risks are different to those in the traditional financial system and require a tailored approach to market regulation.
The Blockchain Association’s Chief Policy Officer, Jake Chervinsky, also weighed in on the subject, noting that neither the SEC or CFTC have the authority to bring about “comprehensive regulation” of crypto, despite the numerous enforcement actions they have brought.
