According to the policy expert of the Blockchain Association, Jake Chervinsky, financial regulators in the United States have made efforts to enforce cryptocurrency regulations. However, they are bound by legal constraints because the ultimate authority to decide on crypto regulations lies with Congress.
Chervinsky Questions The Power Of The CFTC And SEC
Chervinsky recently took to Twitter to express his thoughts on the current state of crypto policy in a lengthy thread. He pointed out that the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) do not possess the power to regulate cryptocurrency comprehensively.
According to Chervinsky, it is uncertain if the Senate Democrats and House Republicans will reach a compromise on crypto legislation. This is due to the ideological division between them.
In his criticism, Chervinsky accused the CFTC and SEC of exceeding their jurisdictional boundaries by trying to “make progress” on their own. He noted that they have refused to seek approval from Congress.
Chervinsky urged the crypto industry to stay calm despite the recent wave of actions from the SEC, the crypto sector’s “top opponent.” He cited the agency’s efforts against staking services as an instance.
Furthermore, Chervinsky proposed that the crypto industry can advocate for positive policy changes by pursuing legal action. He highlighted the significant role of the judiciary in shaping policies that have been previously disregarded.
Coinbase CEO Ready To Defend Staking Offerings In Court
Meanwhile, Coinbase exchange is allegedly under SEC investigation for issues relating to crypto staking. Brian Armstrong, the co-founder and CEO of Coinbase, has adopted a firm position, asserting that eliminating cryptocurrency staking would have dire consequences for the country.
In a tweet, Armstrong maintained that Coinbase’s staking offerings are not securities. He stated that he would defend this assertion in court if required.
Meanwhile, the judgments rendered by judges in pivotal cases establish legal precedents for upcoming issues. For instance, suppose a lawsuit was brought to court, and the judge declared that Coinbase’s staking services were not securities. Other crypto entities can employ such verdict as a defense in comparable situations.
In other news, several lawmakers have attacked the SEC for its stance on crypto. During a recent Senate Banking Committee hearing, the US SEC and its chairman, Gary Gensler, faced criticism from numerous lawmakers.
Senator Tim Scott raised concerns about the agency’s vigilance, questioning whether it had been negligent in its duty. The lawmaker cited the numerous bankruptcies in the crypto industry that resulted in the loss of millions of user funds.
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