Brandon Ferrick, chief legal officer at Douro Labs, stated that the Securities and Exchange Commission’s (SEC) receptiveness to public feedback on cryptocurrency regulations and their roundtable meetings are encouraging indicators that the cryptocurrency sector is not presently undergoing regulatory capture.
In a conversation with Cointelegraph, Ferrick pointed out indicators of regulatory capture such as a public-to-private sector revolving door of personnel, the same lineup of participants at regulatory gatherings, and preferential treatment afforded to select cryptocurrency initiatives. Nevertheless, Ferrick remarked:
“The reason I am not concerned currently is that much of what you observe from the regulatory side, like the SEC, for instance, is completely transparent, public, and there are accessible chances to engage in dialogue with regulators regarding adjustments or reconsiderations of the regulatory frameworks.”
“[The SEC] provides a public platform where you can simply submit written feedback on your views regarding the cryptocurrency regulatory landscape, and you can arrange meetings with them,” the lawyer added.
As the cryptocurrency industry becomes increasingly entwined with the conventional financial system and engages state regulators more, some analysts and executives are concerned that the sector may be encountering regulatory capture that will distort incentives and politicize the emerging cryptocurrency arena.
Related: SEC personnel offers guidance on the applicability of securities regulations to cryptocurrencies
SEC convenes multiple roundtable discussions on cryptocurrency regulations
The SEC has organized numerous cryptocurrency roundtable discussions and panels, with additional events planned in the forthcoming months — a stark departure from the agency’s regulation-through-enforcement methodology employed under previous SEC chair Gary Gensler.
On March 21, the regulatory body conducted its first cryptocurrency roundtable, featuring executives from the cryptocurrency industry, SEC officials, and even adversaries of the crypto sector.
Former SEC official John Reed Stark was notably critical of the sector and opposed extensive regulatory reform, contending that digital assets need to adhere to current securities legislation.
The SEC’s April 11 roundtable centered on trading regulations and featured a different array of panelists, including representatives from Uniswap and Coinbase.
The next SEC panel will take place on April 25, focusing on establishing criteria for cryptocurrency custodians and other entities that manage cryptocurrencies on behalf of clients.
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