The cryptocurrency industry is expressing disappointment over the lack of clear standards for market supervision, while US authorities continue to tighten regulations.
In an interview with CNBC, industry figures such as Joseph Lubin, co-founder of Ethereum, and Nicolas Cary, president of Blockchain.com, expressed their dissatisfaction with the lack of a clear regulatory system and the authorities’ aggressive measures.
The Securities and Exchange Commission (SEC) is currently pursuing legal action against several cryptocurrency companies, including Ripple, Genesis, Gemini, and Paxos, and has recently targeted Coinbase, cryptocurrency Tron founder Justin Sun, and celebrities who recommend cryptocurrency. However, the industry is concerned about the SEC’s attempt to apply securities laws to the industry by using the ‘Howey Test’, which was created decades ago for traditional finance.
Industry insiders are calling for a regulatory system that analyzes cryptocurrencies from a different perspective, arguing that cryptocurrencies are neither securities nor commodities. They are concerned that the lack of clarity on regulation could leave the US lagging behind other countries that are actively working on friendly regulations for the industry.
Cryptocurrency industry leaders have urged Congress to create a legal regulatory framework that properly regulates the industry. However, SEC Chairman Gary Gensler refuted this call, stating that the authorities have already presented clear rules. He emphasized that enforcement measures are necessary regulatory tools to eradicate illegal activities in the industry.
The current regulatory environment is causing concern among investors, who are looking for a stable environment in which to invest. The lack of clarity on regulation is causing hesitation and may lead some investors to choose more regulated investment options. It is up to Congress and regulators to work together to create a legal regulatory framework that properly regulates the cryptocurrency industry.
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