Blockchain Association CEO Makes Bold Claims About Crypto Regulation – Cryptopolitan
Recently, Kristin Smith, CEO of the Blockchain Association, a well-known US-based non-profit organization serving the cryptocurrency sector, made a bold remark about the regulation of cryptocurrencies.
The State of Crypto Regulation in the United States
Smith suggested that US lawmakers need to take control of crypto legislation to have the entire marketplace looked at “comprehensively” in an “open process.”
While the industry needs guidance, she argued that regulators “moving very quickly” could be an obstacle to legislative progress and that more industry engagement is needed.
Smith expresses confidence that the US Congress will soon implement stablecoin legislation, suggesting that preparations have been made since 2019.
As public ledgers make cryptocurrency significantly more visible than the old banking system, she believes it is more important to concentrate on stablecoin and “market-side” regulation than on legislation on crypto-related criminal activities.
On the other hand, having regulators spearhead legislative efforts with enforcement actions and settlements may not be the most effective strategy.
Smith hypothesized that this strategy may be because regulators are reacting to extremely particular facts and situations rather than taking a more holistic view of the industry.
The CEO admitted that the dangers associated with cryptocurrencies are different from those associated with conventional financial services and that regulators need to spend more effort analyzing market regulation to adapt it to these risks.
The Blockchain Association is a cryptocurrency lobbying organization with approximately one hundred members. It is backed by a number of for-profit blockchain-related firms, such as Kraken, Digital Currency Group (DCG), and the Filecoin Foundation.
The Securities and Exchange Commission (SEC) fined Kraken $30 million just a few days ago for failing to register its betting service.
As reported by Cryptopolitan, the SEC also filed a lawsuit against Paxos, the stablecoin provider responsible for the dollar-pegged Binance USD (BUSD), for violating investor protection laws, prompting the company to stop minting BUSD indefinitely.
He is of the opinion that the current regulatory assault on the business has had the same effect as a crypto carpet bombing. Referring to last year’s FTX collapse, she said authorities erred by focusing on enforcement rather than addressing the dangers these networks pose and were unprepared for what turned out to be the biggest fraud since Bernie Madoff .
Europe’s regulation
Smith advocated Europe’s regulatory approach, which she said provided comprehensive legislation that delegates to regulators the appropriate obligations to address the dangers inherent in these networks.
She also took aim at remarks made by Elizabeth Warren, who had previously attacked the cryptocurrency sector for its failure to fully enforce anti-money laundering standards, saying the laws apply to intermediaries such as Coinbase. She said the laws apply to Coinbase.
Smith admitted that there is a need for regulation when transferring from cryptocurrencies to currency or from cash to cryptocurrencies, but he stressed that peer-to-peer transactions must be done in a private manner.
