• Congress is preparing to hold a joint hearing on creating regulations for the crypto industry.
• Kraken’s Chief Legal Officer Marco Santori has called for balanced crypto regulations in the US.
• He believes that collaboration between regulators and the industry could foster innovation and protect investors.
Congress Prepares Historic Joint Hearing
As Congress prepares to hold a historic joint hearing on creating new, fit-for-purpose rules for the crypto industry, the ongoing regulatory crackdown has raised concerns about the future of this rapidly growing sector.
Kraken’s CLO Calls For Balanced Crypto Regulations
Marco Santori, Kraken’s chief legal officer and a leading blockchain and cryptocurrency law expert, has provided valuable insight into the need for clear and consistent regulations to foster innovation and protect investors. In a recent tweet, Santori highlighted the “untenable” situation in the US, noting that other countries are moving ahead with clear and consistent regulations that enable innovation while protecting consumers. He stressed the need for US regulators to take a more proactive approach to crypto by creating an adaptable regulatory framework.
Santori Advocates For Collaboration
Santori suggests that adopting a more collaborative approach is one way to improve how regulators interact with crypto. Rather than viewing regulators as adversaries, he believes greater engagement between regulators and the industry can lead to better outcomes for everyone involved. This includes developing clearer guidelines for compliance, educating regulators on unique aspects of the industry, and fostering innovation through responsible regulation.
Endless Litigation Environment Detrimental To Businesses
Additionally, Santori pointed out that the current “endless litigation” environment is detrimental to businesses like Kraken and fails to protect consumers. The lack of clear and consistent regulations leaves companies vulnerable to arbitrary enforcement actions from multiple agencies with conflicting mandates; as such it can be difficult or impossible for companies like Kraken to navigate these complicated waters without putting their customers at risk or facing significant penalties from different authorities at once.
In conclusion, Marco Santori argues that adoption of clearer guidelines would benefit both businesses and consumers alike by providing greater legal certainty while enabling innovation within this rapidly growing sector. As Congress prepares its historic hearing on this issue, his call should serve as an important reminder of why it is so vital that they get it right when crafting new rules around cryptocurrencies.