Crypto Rule Controversy In US: Protect Or Hinder Innovation?

JAKARTA The lack of regulatory clarity in the crypto market in the US has also raised many questions. Some have criticized the SEC for being considered slow in responding to the development of crypto technology and markets. Some crypto businesses are forced to deal with the SEC to operate in the US due to unclear regulations, making it difficult for them to innovate and compete globally.

Along with growing law enforcement measures and a lack of regulatory clarity in the crypto market in the United States, many debates over why regulators tend not to side with the web ecosystem 3.0.

Since January 2023, the United States Securities and Exchange Commission (SEC) has taken law enforcement measures against several crypto businesses, including big names such as Coinbase, Binance, and Kraken.

The actions implemented by the SEC relate to key accusations against the sale of unregistered digital assets, although there is still debate over whether a number of cryptocurrencies should be considered securities or commodities.

One of the arguments that are often put forward is that big banks on Wall Street want to gain a market share in the crypto ecosystem before regulation is clearly regulated. This was put forward by Lawyer John Deaton, who represented more than 76,000 XRP token holders in a lawsuit against the SEC regarding Ripple.

Deaton quoted a video from 2018 in which a US investor, Tim Draper, told SEC Chairman Gary Gensler that the banks were panicking against the rise in the crypto market.

"We can hear banks panic right now (2018) and unite to say we won't let this happen," Deaton was quoted as saying by Coingape.

According to Draper, the panic was linked to the potential disruption caused by crypto, and that the old players would sue, exert media pressure, and use government regulators to slow crypto progress. Deaton argues that this is all done to protect the interests of the old players, namely major banks.

The lack of clarity on regulations in the crypto market in the US has also raised many questions. Some have criticized the SEC for being considered slow in responding to the development of crypto technology and markets. Some crypto businesses also face challenges in operating in the US due to unclear regulations, making it difficult for them to innovate and compete globally.

On the other hand, there is also a view that strict regulations against crypto markets in the US are needed to protect investors and prevent potential fraud. Some regulators argue that digital assets, especially those sold in the form of ICO (Initial Coin Offering), should be strictly regulated to avoid losses to investors.