Crypto Firms Urge Regulatory Clarity

A group of over 50 crypto firms urged U.S. President Joe Biden and Vice President Kamala Harris to establish clear rules for the digital asset industry, highlighting that the lack of regulations has harmed consumers and stifled innovation.

Other jurisdictions, including the European Union, Japan, and the United Kingdom, have advanced their regulatory frameworks, as noted by the Crypto Market Integrity Coalition in a letter to the White House on Wednesday. This coalition includes notable members such as Solidus Labs, Coinbase, Circle, Robinhood, BitGo, and Chainalysis.

The coalition stated, “Many of the losses of the last few years could have been avoided with basic consumer protections.” Members expressed concern for market integrity and the importance of strong industry standards to prevent misconduct.

The letter pointed out that the current enforcement approach to crypto has led compliant U.S. firms to lose market share to non-compliant entities, making a case for regulatory clarity that has long been desired by the crypto community. Regulatory agencies like the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have brought numerous charges against various crypto exchanges and firms, with SEC Chair Gary Gensler asserting that most cryptocurrencies should be treated as securities.

In recent months, lawmakers have been working on regulatory bills, including the Republican-led Financial Innovation and Technology for the 21st Century Act (FIT21), which received support from 71 Democrats. The Biden administration has stated its opposition to this bill while expressing openness to collaborate with lawmakers on new legislation.

The coalition urged the administration to work with Congress to enact foundational regulatory legislation this year, warning that missing this opportunity would have implications domestically and internationally.

Election Season

As the election season unfolds, the crypto industry has gained significance with substantial funding pouring into crypto super PACs. Presidential candidates, including Kamala Harris and Donald Trump, are actively engaging with the crypto community.

The Republican Party has voiced support for crypto firms, promising to end what they call an “unlawful and un-American crackdown” on the industry, while Trump has expressed a friendly attitude toward it. Meanwhile, Harris’ team has started outreach to the crypto sector following Biden’s announcement to not seek reelection, though Harris has yet to clarify her stance on crypto.

Recently, the advocacy organization Stand with Crypto announced two new hires: Logan Dobson as executive director and Sabrina Siddiqui as senior communications advisor. Dobson previously served as a senior aide to Senator Cory Gardner, and Siddiqui worked in the Obama Administration’s Treasury Department as a spokesperson for tax and economic policy.