Policy director of the Blockchain Association: neither the SEC nor the CFTC has the right to comprehensively supervise cryptocurrency

According to reports, Jake Chervinsky, the policy director of the American non-profit organization Blockchain Association, said on social media on Tuesday that neither the Securities and Exchange Commission nor the Commodity Futures Trading Commission has the authority to comprehensively regulate cryptocurrencies. Chervinsky said that 2022 was the worst year in the history of cryptocurrency, because the collapse of FTX.com, a cryptocurrency exchange headquartered in the Bahamas, had caused great damage to the reputation of the industry and led skeptics to rush to supervise. The ideological differences between Republicans and Democrats in the House of Representatives delayed the debate on the regulation of digital assets, which led agencies to expand their powers beyond recognition in order to complete their work without Congress, whether or not permitted by law.

Interpretation of this information:

According to Jake Chervinsky, policy director of Blockchain Association, neither the Securities and Exchange Commission (SEC) nor the Commodity Futures Trading Commission (CFTC) has the legal authority to regulate cryptocurrencies comprehensively. Chervinsky’s comments come at a time when digital assets are being discussed in the US House of Representatives as differences between Republicans and Democrats have delayed the debate on regulatory framework. As per Chervinsky, this delay has pushed regulators to extend their jurisdiction beyond recognition in order to progress with their work without the approval of Congress, whether or not it is legally permitted.

Chervinsky emphasized that 2022 was a terrible year for the cryptocurrency industry. The collapse of the Bahamas-based cryptocurrency exchange FTX.com was a major factor that he believes led to the significant reputational damage of the industry. He also highlighted the increased scrutiny that the industry faced from skeptics who saw the collapse as an opportunity to tighten regulations.

Many industry experts believe that the US regulatory agencies are taking divergent approaches to digital asset regulation. The SEC’s focus is primarily on securities regulation while the CFTC’s focus is on commodities. However, it is important to note that SEC has specifically mentioned cryptocurrencies as a type of security, while the CFTC has referred to cryptocurrencies as commodities which are subject to anti-fraud and anti-manipulation laws.

The cryptocurrency industry is said to be evolving at a rapid pace, with new innovations and regulatory challenges presenting themselves almost daily. As such, it is important to have a clear understanding of the legal and regulatory framework under which the industry operates.