Connect with us
Active Currencies 14791
Market Cap $2,469,545,528,576.10
Bitcoin Share 51.84%
24h Market Cap Change $-2.13

Crypto regulations impossible “without an act of Congress”: Blockchain Association

2min Read

Share this article

  • The CLO of the Blockchain Association asked the U.S. Congress to oversee crypto regulations.
  • A lack of regulations is causing regulators to overstep their authority.

Pro-crypto trade group Blockchain Association has addressed the recent crackdown on crypto firms by multiple United States regulators. Jake Chervinsky, the Chief Legal Officer of the Blockchain Association, took to Twitter on 14 February to share his thoughts on the mounting enforcement actions against the digital asset industry. 

Federal regulators overstepping their authority?

Notably, the recent streak of hostile moves by regulators in the country has sent fears of a crypto crackdown to an all-time high. He acknowledged that the series of bankruptcies and collapses in 2022 made it the worst year from a policy perspective. 

The fallout from these collapses have prompted concerned regulatory agencies including the Securities and Exchange Commission (SEC) and the Commodities and Futures Trading Commission (CFTC), to step up their attempts to regulate the industry and enforce their policies to the best of their ability. 

However, these regulators are bound by the “legal reality” of not having the authority to comprehensively regulate crypto. The Blockchain Association’s executive added:

“Neither can obtain it through any amount of enforcement, and neither will ever have it without an act of Congress.”

Divided Congress is encouraging crypto enforcement

Chervinsky revealed that government bodies have stated that crypto regulation by the U.S. Congress, not the agencies. However, the current structure of the 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. Additionally, the race for greater oversight likely triggered the sudden pile up of enforcement actions by these agencies. 

To that end, the Blockchain Association’s CPO laid out several steps through which they could enforce actions. This included participating in the public process, bringing in legal action against agencies that overstep their authority, educating members of Congress, and engaging in litigation where necessary. 

Share

Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.