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Former SEC Chief Jay Clayton and former undersecretary of the Treasury Brent McIntosh carrying similar opinions about the regulations in cryptocurrency suggest that there is no need to introduce new regulations. The existing regulations, if properly scrutinized, would be sufficient to run the crypto market and preserve the U.S. role in the crypto market.
Responsible innovation, tight regulations and responsible decision-making capabilities are the core for any regulations to be levied on for the smooth running of the economy.
This is what the former SEC Chief and former undersecretary of the Treasury believes. Yeah, the former SEC chair Jay Clayton and Brent McIntosh, the two well-known names in the U.S. regulatory authority circle, think that there is no need to make new regulations for the cryptocurrency market. Instead, it can be governed using existing financial regulation.
While writing an opinion for the Wall Street Journal, the duo had expressed their views about the existing regulations on cryptocurrency and how beneficial if the authorities work on those rules only.
In an op-ed titled Crypto needs regulation, but it doesn’t need new rules, the duo asked Treasury Secretary Yellen’s suggestions that the U.S. regulations are not up to the task.
Regulatory framework necessary
Both of them opine that the core idea in the existing U.S. regulatory framework is good to guide the market. Both Clayton and McIntosh believe that there will be a lot of risks involved in both the overregulation and under regulation in the emerging industry.
They advised the policymakers to focus their efforts on the principal objectives underpinning existing financial regulations like financial stability, deep and efficient funding markets across the spectrum of debt and equity and the prohibition of fraud and illicit activity.
This is not the first time that any official government is pressing for more crypto regulations. The current SEC Chair Gary Gensler also said that because cryptocurrency exchanges lack market regulators, there is no protection around fraud and manipulation.
Clayton and McIntosh suggest that there should be a plan set out by the financial regulators and policymakers to tackle the issue of digitization of assets and financial technologies. Both are based on the current regulations.
Both of them shared similar sentiments on addressing the most important issues like clarity on which regulators will regulate which types of digital assets. Second, put a clear indication about the digital asset meeting the requirements to legally function in the U.S. Lastly, an answer to whether the U.S. should issue a digital dollar or facilitate digitization. It could be done through other means like stablecoins.
Let us take a look at how cryptocurrency regulations playing a fair game in the countries
Cryptocurrency regulations in the world
In the U.S. last month, the Treasury Department had proposed the traders disclose any crypto transaction worth more than $10,000 to the IRS. Meanwhile, SEC has put a hold on the ruling of the proposed bitcoin ETF. The fund would track bitcoin and make it easier for institutional investors to invest in cryptocurrency.
Beijing has also put a curb on bitcoin mining. The traders are moving their farms elsewhere and fire selling rigs. Brussels has published new regulations on crypto assets in January. But Sweden’s Finance minister last week announced that crypto exchange regulations are still ongoing. It is a work in progress.
Nayib Bukele, President of El Salvador has given a proposal to make bitcoin a legal tender. The proposal will be passed in Congress, where his party has a full majority.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
