Lawmakers Urged to Take an Incremental Approach to Cryptocurrency Legislation
Instead of trying to pass a comprehensive bill all at once, Senator Bill Hagerty implies that lawmakers should adopt an incremental approach to cryptocurrency legislation. This approach allows for step-by-step processes that can be adjusted based on industry feedback and lessons learned. By breaking down the legislation into smaller, more manageable pieces, lawmakers can create certainty and provide a framework for innovation.
Hagerty emphasizes the value of simplicity in regulation. His own legislation, consisting of just two pages, intends to provide clarity and guidance without unnecessary complexity. He believes that the length of legislation should not determine its price, especially in an industry as rapidly evolving as crypto.
‘Picking and Choosing’: Criticism of the SEC’s Regulation Approach
Hagerty criticizes the Securities and Exchange Commission (SEC) for its “regulation by enforcement proceeding.” He argues that the SEC’s lack of clear criteria and its tendency to selectively enforce regulations create uncertainty in the market. Hagerty believes that SEC Chair Gary Gensler’s approach is detrimental to the industry and calls on the Senate and House of Representatives to address this issue.
Hot Take: A Balanced Approach to Cryptocurrency Legislation
In the case of regulating the cryptocurrency industry, an incremental approach that balances innovation with clear boundaries is critical. Lawmakers should prioritize simplicity and certainty to foster growth and development in this rapidly evolving sector. In addition, regulatory agencies like the SEC should establish transparent criteria and avoid arbitrary enforcement actions to sustain market stability and confidence. It is the responsibility of lawmakers to secure a supportive regulatory framework that encourages innovation while protecting investors and consumers.
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