Former SEC Chairman Jay Clayton and former Undersecretary of the Treasury Brent McIntosh spoke in favor of maintaining existing crypto rules, thus opposing the introduction of new rules
In an opinion article in the Wall Street Journal, Jay Clayton and Brent McIntosh claim that current regulations are enough to monitor the crypto sector.
The piece, written jointly, comes at a time when pressure is mounting in the US to establish and tighten regulatory measures for the booming digital assets. Two US senators have recently expressed the idea of banning crypto to fix the exploits after the increased ransomware attacks.
In the Sunday article, the former regulators explained that the current US government view that crypto needs new regulation is fundamentally flawed. Instead, given the risk of over – or under-regulation that comes with reinventing rules, the government should use the existing regulatory tools to manage the crypto industry.
To this end, regulators and policy makers in the financial sector should draft a plan based on current regulations in the management of digital assets. The former SEC chairman and former undersecretary of the Treasury questioned Janet Yellen’s views on crypto in the past. The current U.S. Treasury Secretary, a well-known Bitcoin Cynic, has insisted on the idea that the current framework is not sufficiently prepared to regulate crypto.
They also questioned Gary Gensler, the SEC’s current chairman, who said crypto markets lack protection against fraud or manipulative acts. The two also outlined their proposed approach and explained that the best approach would be based on three main ideas.
On the one hand, efforts should be made to ensure the efficiency and clarity of the law as to which regulatory authorities should be entrusted with the regulation of which type of digital assets. Secondly, it was suggested to create clear requirements for digital assets in the US. This would help reduce risk and encourage new businesses.
Third, the government must decide how to proceed in relation to central bank digital money (CBDCs) and stablecoins. The industry experts concluded by saying that an organized approach to the application of regulations in the crypto market would help to realize responsible innovation. It would also help maintain much-needed stability.