Blockchain Association: Crypto Regulations Impossible Without Congressional Act

The Blockchain Association, a trade group advocating for the cryptocurrency industry, has issued a statement regarding the recent regulatory crackdown on crypto firms in the United States.

However, in a series of tweets, the association’s Chief Legal Officer, Jake Chervinsky, expressed his concerns about the mounting enforcement actions against the digital asset industry.

1/ After a streak of hostile moves by US regulators, with rumors of more to come, fears of a crypto crackdown have never been higher.

It may be tough, but we can chart a path through it.

Let’s discuss the state of crypto policy: what’s happening, why, and what we do next 🧵

— Jake Chervinsky (@jchervinsky) February 14, 2023

Chervinsky noted that the series of bankruptcies and collapses in 2022 made it the worst year from a policy perspective. This has prompted concerned regulatory agencies like the SEC and CFTC to step up their attempts to regulate the industry.

However, Chervinsky emphasized that regulators are bound by the “legal reality” of not having the authority to regulate crypto comprehensively.

2/ Before we start, some comfort for the concerned:

The recent flurry of activity is jarring, but it’s not a surprise and it doesn’t spell doom for crypto in the USA.

Far from it: we have champions in key roles across government, and our industry is strong and ready to fight.

— Jake Chervinsky (@jchervinsky) February 14, 2023

Neither regulator can enforce crypto regulations without Congress; enforcement alone is insufficient for regulatory power. The statement highlighted the need for a clear regulatory framework to govern the cryptocurrency industry.

Divided Congress Encouraging Crypto Enforcement

Chervinsky revealed that government bodies have stated that crypto regulation is by the U.S. Congress, not the agencies. However, the current structure of Congress, which is divided literally and ideologically by the House Republicans and Senate Democrats, makes a deal on crypto legislation seem unlikely.

This has given the regulators the opportunity to stretch their authority and overreach their jurisdiction to extend their oversight of the crypto industry.

The association’s statement called for the participation of industry stakeholders in the public process. It also called for legal action against overstepping agencies, education of Congress members, and litigation when needed.

The statement expressed the association’s commitment to work towards a regulatory framework that encourages innovation while also ensuring consumer protection and safety.

Blockchain Technology And The Future Of Crypto Regulation

As the use of blockchain technology becomes more widespread, the need for regulatory clarity and certainty has become increasingly important.

Blockchain technology provides a transparent and secure way of storing data and conducting transactions. This makes it an ideal solution for many industries, including finance, healthcare, and supply chain management.

Regulators acknowledge blockchain’s potential but must also address industry and consumer concerns about its applications. Lack of clear regulation hinders industry potential, creating uncertainty and risk for businesses and consumers.

Related Reading | SHIB Family Excited For Rumored Shibarium Beta Release

In conclusion, the Blockchain Association’s statement highlights the urgent need for a comprehensive regulatory framework for the cryptocurrency industry.

The association’s call to action for industry stakeholders to participate in the regulatory process, legal action against overreach by regulators, and education of Congress is an important step towards achieving this goal.

With a clear and predictable regulatory environment, the industry can continue to innovate and grow while also ensuring the safety and protection of consumers.