The development of blockchain-based digital assets, and the multi-billion dollar market that has formed around them, has proved to be a tremendous challenge for global legislators and regulators alike.
The digital economy is continuing to surge forward — making it an urgent necessity for a proper legal framework to be created, one that strikes a balance between fostering innovation and maintaining the integrity of our financial system.
The key to achieving balanced rules and regulations lies in good faith actors following the rules where they are clear and pushing for clarity where they are opaque, all while ensuring that both industry participants and regulators alike work together to create a robust framework that promotes innovation and safeguards consumers.
This op-ed is part of CoinDesk’s State of Crypto Week sponsored by Chainalysis. Zac Townsend is the CEO and co-founder of bitcoin-denominated insurance company Meanwhile.
It may seem that the last few years have been anything but productive in fulfilling this mission, but nonetheless, progress is being made.
Well-intentioned actors within the crypto industry have worked tirelessly to comply with the legitimately outlined rules while also advocating for the much-needed clarity in areas where none exist. Their efforts, however, have been historically met with a degree of shrouded hostility from regulatory bodies, particularly the U.S. Securities and Exchange Commission (SEC).
The SEC has time and time again argued that there is no ambiguity in the rules, and that the existing laws are effective and clear when applied to digital assets. In the words of SEC Chairman Gary Gensler, “Some in the crypto industry have called for greater ‘guidance’ with respect to crypto tokens. For the past five years, though, the commission has spoken with a pretty clear voice here.”
However, for industry writ large, including public companies like Coinbase who have done their best to comply with the aforementioned existing rules, the only thing that is clear is that the current framework falls flat in protecting investors and companies alike.
As we continue to build smart, and work hard in the arena of public policy, we will soon see the fruits of our collective labor
Recently, leaders in this work have built around them a large advocacy…
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