What the U.S. Congress Decides on Crypto Will Ultimately Overstepping their authority
The policy expert for the cryptocurrency advocacy group Blockchain Association says that despite attempts to police cryptocurrency through enforcement actions, United States financial regulators «are bound by legal reality,» and Congress will ultimately decide what regulations should be put in place for cryptocurrencies.
Jake Chervinsky, the chief policy officer of the organization, contributed his thoughts to a lengthy Twitter conversation on the topic of the current status of crypto policy on February 14.
He made the observation that the Securities and Exchange Commission as well as the Commodity Futures Trading Commission «do not have the ability to completely oversee cryptocurrency.»
Given the ideological divide that exists between the House Republicans and Senate Democrats, Chervinsky is of the opinion that a compromise on the crypto legislation is «unlikely.» He said that the Securities and Exchange Commission and the Commodity Futures Trading Commission had exceeded their powers in an effort to «get things done» without Congress.
Chervinsky issued a plea for the sector to maintain its composure in the wake of the recent flurry of action from the SEC, which he referred to as «crypto's biggest opponent.» As an example, Chervinsky cited the SEC's crackdown on staking services.
The settlement that the SEC reached with the cryptocurrency exchange Kraken on February 9, which forbade Kraken from ever selling staking services to consumers in the United States, has been publicly criticized by SEC Commissioner Hester Peirce.
Peirce expressed his disagreement with the majority opinion in a statement dated February 9, in which he said that regulating a growing business via enforcement «is neither an effective or
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