By Ike Brannon. October 26, 2022. (Forbes).
Federal regulators are notorious for bogging down industries and stifling economic growth with myriad regulations, which is why most industries are loath to ask Congress to enact more regulations. Yet, that’s precisely what cryptocurrency companies and investors alike are asking for.
The fact that Congress has yet to consider any crypto-specific legislation has left regulators to their own devices, to which they have responded by adopting a strategy of regulation through enforcement: Instead of prescribing what is and is not possible in this space they merely react to the actions of market participants and then determine whether what they did is, in fact, allowable.
While such ex post regulations are easier for regulators, it leaves us with a market in which those that innovate in this market risk being subject to retroactive punishment and ruinous lawsuits.
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By Molly Ball. October 3, 2022. (TIME).
To the untrained ear, Hester Peirce’s comment sounded anodyne, but everyone in the audience knew what she was doing: selling out her boss. “It’s fairly clear,” the U.S. Securities and Exchange commissioner said from the Washington conference stage, “that we’ve been taking an enforcement-first approach in an area where we should be taking a regulatory-first approach. I think we’ve got the balance wrong right now.”
Peirce was speaking at the D.C. Blockchain Summit in May, to an audience of the cryptocurrency faithful. Outside the auditorium, geeks, lobbyists and investors mingled in a cavernous converted warehouse. “Trust is non-fungible,” read a banner for the accounting firm Deloitte, hung from a balcony where the company was sponsoring a lavish spread of snacks. Most attendees were done up in D.C. drag—conservative suits and dresses, more boardroom than Burning Man.
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By Jared Whitley. July 23, 2021. (Seeking Alpha)
Sen. Elizabeth Warren (D-Mass.) has made herself clear that she sees cryptocurrencies as “bogus private digital money” and a kind of social pestilence that needs to be annihilated through regulation. In short, she has no idea what blockchain technology is, what it does, how it works or why people use it – but it has to be stopped and she’s going to stop it.
Like many geriatric progressives approaching their sell-by date in Congress, Warren is so out of step that young progressives in her own party shake their heads at how wrong she is on this one.
But Warren is not some harmless grandmother yelling from her porch – she’s the chair of a Senate Banking subcommittee, and she can do real damage. In a recent letter to U.S. Securities and Exchange Commission Chairman Gary Gensler, Warren not so subtly demanded that the agency start grabbing more regulatory power in order to smash U.S.-based cryptocurrency exchanges. Legal and industry experts believe that Warren colluded with anti-crypto zealots inside the SEC to write that letter as a Beltway power play, hoping to lock in the SEC as “the Terminator” before other agencies, like the Commodity Futures Trading Commission (CFTC), dare to legitimize the utility and benefits of this new technology. Taking a step back, it was an act of desperation by a faction of Washington dinosaurs that are poised to be on the losing side of history, and Gensler’s agency is in turmoil.
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