The United States is moving toward a more informed and collaborative approach to cryptocurrency regulation, with industry experts stepping in to help shape the future of policy.
Roundtable anchor, Rob Nelson, joined attorney James “MetaLawMan” Murphy, to discuss the shift from enforcement-driven oversight to a framework guided by expertise and collaboration.
"What's funny is, it was the policy of the United States government that no one who owns crypto is allowed to have any voice in the development of policies around crypto," Murphy said. "This pivot is going to be one of the most dramatic we've ever seen, bringing real experts to design policies going forward." He emphasized the importance of clear rules that support legitimate industry growth while curbing fraud.
On Tuesday, Senator Tim Scott, who is slated to become the Chair of the Senate Banking Committee in the next chapter of Congress, shared an optimistic outlook on pro-crypto legislation after meeting with incoming White House AI and Crypto Czar David Sacks.
"Blockchain technology and cryptocurrency have the potential to democratize the financial world, and I look forward to working with President Trump, David Sacks, and my colleagues in Congress to develop a regulatory framework for digital assets that encourages innovation here in the United States," Sen. Scott said.
Nelson recalled a conversation with SEC Commissioner Hester Peirce, who shared concerns about the lack of expert input. "She said, 'The best thing that could happen to us is to get leaders in this space to give us guidance. Right now, we're regulating without full knowledge, and it’s like gun-slinging regulation,'" Nelson remarked. He agreed that a balanced approach is essential for the industry to thrive, contrasting this with the controversial "regulate by enforcement" strategy associated with SEC Chair Gary Gensler.
Murphy critiqued Gensler’s approach, citing the SEC's resistance to proactive legislative frameworks like the House's proposed FIT 21 bill. "Gary Gensler sent a letter to Congress saying, 'Don't pass anything.' No constructive feedback, just opposition," Murphy said. He called this reliance on outdated Supreme Court precedents to regulate digital assets "absurd."
Looking ahead, Murphy expressed optimism about new SEC leadership fostering collaboration with Congress. "Engagement between the experts at the SEC, the CFTC, and Congress is crucial to develop a regulatory framework that makes sense for legitimate players and consumers," he concluded. This shift could mark a turning point for the U.S. crypto industry's future.