Bitcoin News: Jay Clayton and Brent McIntosh state that Bitcoin and cryptocurrencies do not need new rules. According to them, only regulatory clarity is needed for the field to grow.
In an opinion piece published on June 6, 2021; Former SEC chairman Jay Clayton and former Undersecretary of Treasury for International Affairs Brent McIntosh argued that the current US Administration’s disapproval of the US legal system to regulate cryptocurrencies is fundamentally flawed.
“No need to reinvent the wheel for Bitcoin”
Clayton and McIntosh sought to refute the arguments of current US Treasury Secretary (and prominent Bitcoin skeptic) Janet Yellen, who claimed that the US framework was “unfit” to regulate cryptocurrencies. He also emphasized that Gary Gensler, the current Chairman of the Securities and Exchange Commission, who said that crypto markets have no protection against fraud or manipulation, was wrong.
According to regulatory experts, the main focus of the issue is applying the correct interpretation of the law. Clayton and McIntosh said the US legal framework already has all the necessary elements to cover cryptocurrency-related activities, and there is no need to reinvent the wheel or overregulate the industry.
What should regulators do?
According to them, the most appropriate approach focuses on 3 key issues:
First, regulators should focus on delineating their powers to avoid conflicts of opinion or loopholes in the law. This step will provide efficiency and legal clarity that will benefit the entire industry and the crypto community.
Second, they must have strict requirements for a token or cryptocurrency business to operate in the country, minimizing risks and encouraging new businesses.
Third, the Biden administration must decide which approach to take with regard to CBDCs and stablecoins. If these alternatives prove to be more efficient for transferring value and making payments, there should be a clear focus on where to direct efforts to launch a digital dollar or increase digital payment instruments such as stablecoins.