Despite efforts to control cryptocurrencies through enforcement proceedings, the policy expert for the crypto advocacy group Blockchain Association claims that Congress will eventually determine cryptocurrency rules since US financial authorities “are bound by legal reality.”
Jake Chervinsky, the association’s chief policy officer, offered his opinions in a lengthy Twitter discussion on the state of crypto policy on February 14.
He stated that neither the Commodity Futures Trading Commission nor the Securities and Exchange Commission “have the power to comprehensively regulate cryptocurrency.
Given the ideological divide between House Republicans and Senate Democrats, Chervinsky thought a settlement on crypto legislation seemed “unlikely.” In an effort to “get things done” without Congress, he charged the SEC and CFTC with exceeding their authority.
Chervinsky urged the industry to maintain its composure in the wake of the SEC’s recent rush of activity, calling it “crypto’s biggest opponent,” and cited the SEC’s crackdown on staking services as an illustration.
Hester Peirce, an SEC commissioner, publicly criticised the SEC’s settlement with cryptocurrency exchange Kraken, which was reached on February 9. The settlement prohibited Kraken from ever providing staking services to customers in the United States.
Peirce stated that controlling a growing business through enforcement “is neither an efficient or equitable manner of governing” it in a dissenting statement on February 9.
The crypto business may be able to influence policy through litigation, according to Chervinsky, who noted that the judiciary is a key player in prescribing previously “ignored” legislation.
The SEC is investigating cryptocurrency exchange Coinbase in a manner similar to that which led to Kraken’s settlement.
Brian Armstrong, the CEO and co-founder of Coinbase, has adopted a more steadfast stance, contending that eliminating crypto staking would be detrimental to the United States.
In a tweet on February 12, Armstrong claimed that Coinbase’s staking services are not securities and stated that he would “glad defend this in court if needed.”
Legal precedents are established by judges’ decisions in important cases. If a judge ruled that Coinbase’s staking services did not qualify as securities in such a case, other cryptocurrency companies in a same situation might utilise the ruling as support for their defence.
