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While recognizing the importance of crypto regulations imposed by the countries, experts consider it should be done but at the pace
Sam Bankman Fried said that the power struggle in Washington is going on, which is resulting in slowing the progress of Crypto in the region. The center of this battle remains the United States Security and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC); where both are striving for superiority for control over the crypto assets industry. The Head of a cryptocurrency exchange based in the Bahamas, FTX, said that if these agencies agreed on the responsibilities of cryptocurrency exchange licensing, significant progress could be made.
Bankman Fried said that this would solve more than 60% of this problem alone. The commission was created in 1974 to look over the derivatives trading and commodity futures that also used to see digital currencies as commodities. While on the other hand, the SEC said that Bitcoin (BTC) and ethereum (ETH), the two largest cryptocurrencies by market capitalization, are not securities, while it has not stopped the regulator from cracking down on tokens other than these and their initial coin offerings. The SEC even considered the capital raising tool, ICO, as an unregistered security offering.
Director of Blockchain Association Ron Hammond said that it is not the issue at the agency level only either. He said that congressional committees are struggling to see where their jurisdiction falls, and individual lawmakers have a stronger stance regarding crypto-related issues. He considered this more of a power grab which is all over the DC right now.
Still, Bankman Fried is confident that some guidance could be seen in the near future from the regulators. HE has made donations of about $5,800 dozen times to individual candidates to Congress members belonging to both parties.
He said that we all are not in a place actually with more federal oversight than we had a year earlier. We are in such a place where there are some strong and concrete proposals that could be applied very soon that are being considered seriously.
Industry members said that the crypto regulations seem to be void or incompleteness all around the world. Head of compliance and regulatory affairs of CoinShares, Nick Du Cros, said that many nations are waiting to see where things could lead to. Through mechanisms like the G7 and G20, it seems that the big countries are now coming together, and they have international standards and a proper roadmap. But he thinks that there is also political pressure internally, and that’s where the difference between different countries is seen.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
