Former SEC chairman Jay Clayton and former undersecretary of the Treasury for International Affairs Brent McIntosh wrote in an opinion piece published this week that the current U.S Administration’s stance of viewing the U.S. legal system as unfit to regulate cryptocurrencies is fundamentally flawed. The current U.S SEC chief Gary Gensler has repeatedly argued that cryptocurrencies need more strict regulations to protect investors’ interests.
Former regulators argue current regulations are enough.
Jay Clayton and Brent McIntosh sought to refute the arguments of current U.S. Treasury Secretary Janet Yellen, who believes that the current U.S. framework isn’t “up to the task” of regulating cryptocurrencies. Former regulators also believe that the thinking of Gary Gensler, current Chairman of the Securities and Exchange Commission, who said that cryptocurrency markets have no protection against fraud or manipulation, is wrong. Clayton and McIntosh further claimed that the U.S. legal framework already has all the necessary elements to cover cryptocurrency-related activities. There is no need to reinvent the wheel or over-regulate the scene, which, they argued, threatens innovation.
Former regulators suggest what the current administration needs to do.
Former regulators have argued that instead of creating a set of laws to regulate this activity or attempting to implement new rules of the game, it is sufficient to apply existing rules to securities offerings that already have a proven strength in the U.S. legal system. According to Clayton and McIntosh, regulators should focus on drawing the boundaries of their competencies to avoid conflicts of opinion or loopholes in the law. They also suggested that the Biden administration should decide on which approach to take regarding CBDCs and stablecoins. If those alternatives prove to be more efficient for transferring value and making payments, there should be a clear focus on where to direct effort.