Jake Chervinsky, the general policy officer at Blockchain Association shared his own take on the happenings in the crypto industry. Speaking on crypto legislation, Jake said some relevant bodies like Financial Stability Oversight Council (FSOC) and the PWG concluded that the U.S Congress and not the enforcement agencies are the ones responsible for crypto regulation.
5/ Regulators seem especially inclined toward action due to the makeup of Congress.
In recent years, important government bodies like FSOC and the PWG have said Congress—not the agencies—must decide crypto regulation.
That hasn't happened, and now we have a divided Congress…
— Jake Chervinsky (@jchervinsky) February 14, 2023
However, the reverse has been the case as regulators including the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have gone beyond their jurisdiction to forcefully enact laws without going through the right channel. In the officer’s words
“no matter how many enforcement actions the SEC and CFTC bring to the table, they are bound by legal reality”.
This simply means the SEC, CFTC, Federal Reserve Board, Office of the Comptroller of the Currency (OCC), and Federal Deposit Insurance Corporation (FDIC) do not have the right to outrightly regulate and enforce crypto in the United States without an act from the Congress.
While referencing the regulator’s recent move of labeling every asset with a market price as a security, the officer condemned the SEC’s “regulation by enforcement tactics.”
Recall that Kraken reached some sort of settlement with the regulator after its staking service was tagged security while on the other hand, Coinbase’s CEO Brian Armstrong said his firm is ready to defend its staking product in a US Court as it doesn’t qualify as a security.
Jake Makes a Proposition for the Crypto Industry
Meanwhile, the strategic advisor in his Tweet listed out some things that can be done by investors and exchanges to reduce the current attack posed by the regulators as well as advance better policies for the crypto industry at large.
15/ So, what can we do to resist this current attack and advance good policy in the long term?
I’ll give you my top five priorities:
FIRST, we can participate in public process and make our voices heard. Regulators have to consider public comments before finalizing new rules…
— Jake Chervinsky (@jchervinsky) February 14, 2023
According to Jake, Congress plays an integral role in the formulation of an improved and suitable regulation for the industry and unfortunately, it is currently divided as it regards crypto regulation after Sam Bank-man Fried’s fraud cast doubt on the industry. He, therefore, proposes that crypto enthusiasts and technocrats help congress by making suggestions on laws that actually work for the industry.
Furthermore, he called on players to help the agencies check their excesses by pointing them out to Congress so they could be held to account. And finally, be ready to pursue a legal route if and when the agencies fail to observe the proper process or infringe on constitutional rights.
