As the post-election period dawns in the United States, significant shifts are observed in the dynamics of crypto regulations, according to Patrick Daugherty, a noteworthy authority in the space. The former Special Counsel at the U.S Securities and Exchange Commission (SEC) and the Federal Home Loan Bank Board is optimistic about the future finance laws in the United States, in particular the attitude towards crypto-related regulations.
Presidential elections have marked a clear divide in the approach towards crypto regulations. Prior to President Biden’s arrival, the “push-pull relationship” between crypto businesses and regulators seemed to diminish the progress. Many businesses were strangled by the regulators’ resistance towards clarifying the existing uncertainty in the regulation frameworks. However, the new administration seems to take a different approach.
Patrick Daugherty suggests the new administration has soft spot for business development, innovation and with the Fidelity alumni, Elad Roisman heading the SEC, the climate for discussion is ripe. Daugherty presents a strong point on regulatory obstacles based on Roisman’s prior remarks, stating we ought to embrace the personal liberty principles undergirding blockchain technology,” Tackling regulatory obscurity serves as the cornerstone for every investor or businessperson involved in the crypto space.
The focus seems to shift towards the complexity of crypto regulation. FinCEN’s proposed rule on virtually reported currencies is one such regulation that received substantial backlash from the industry. The bullish reaction could emerge because of the perceived threat to user privacy and potential stifling of innovations. Daugherty, however, seems optimistic about the progression of discussion from the standpoint of regulatory clarity, maintaining that regulation isn’t about creating restrictions, but paving the way for the innovative developments in finance.
Another major concern lies in the international regulations on crypto assets. Nations like China are embracing blockchain technology and, in turn, intensifying the global competition in the field. Daugherty emphasized the importance for the U.S to remain competitive and not fall behind in the international scene. This could be achieved by fostering innovation-friendly regulations that help to unleash the full potential of the American tech industry.
Daugherty furthered his assurance on the crypto regulatory climate under the Biden administration by mentioning Biden’s progressive approach to the markets. The Trump-era ‘midnight regulations’ that birthed on the brink of the elections, that caused quite a stir, seem solvable under the new administration.
The strength of the crypto community lies in the unity of its members in the face of regulatory uncertainty. Daugherty quotes, ‘It is better to behave like ‘we’ than an ‘I.’ The statement inspires rallying all stakeholders under one umbrella for confronting regulatory challenges. The collaborative efforts would prove instrumental in providing insight and presenting constructive arguments in front of lawmakers.
In summary, a revolution has been sparked in the crypto-regulatory landscape post elections, painting an optimistic future for crypto-businesses and investors. The new administration is fostering a more inclusive and innovation-friendly environment, reducing obscurity and potential threats. With the unity of the crypto community and the support of regulatory bodies, the United States could thrive and maintain its dominance in the realm of blockchain and crypto-related innovations.
