Crypto Regulation in the US: Midterm Elections and Beyond
Crypto executives anticipate US regulators, particularly the Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), and Treasury, to play a significant role in shaping crypto policy, regardless of the midterm election outcome.
With the US midterm elections underway, Maylea Ma, deputy general counsel at 1inch, predicts federal agencies will drive the next phase of crypto regulation. While the election may impact the CLARITY Act's trajectory, Ma believes substantial progress will come from these agencies, not Congress.
She notes that these agencies are increasingly engaging with crypto projects, but emphasizes that this engagement doesn't provide the stability expected through legislative means.
The agencies have already taken notable steps:
- In August, the SEC proposed a framework for crypto fundraising, offering exemptions for certain token offerings and a safe harbor from investment contract classification.
- In September, they updated guidance on token buybacks, crypto networks, and staking receipt tokens.
The CFTC also submitted a crypto market regulatory plan for White House review, highlighting their efforts to regulate the crypto market.
"The long-term goal is a statute that can't be reversed with each government change," Ma expressed.
Michael Ho, co-founder of D3 (behind Doma Protocol), agrees that the uncertainty surrounding regulatory guidance delays institutional capital's entry into tokenized real-world assets. He stated, "Clear rules written into law are what will attract institutional capital."