The enforcement actions are fueling debate about how cryptocurrency players fit into financial regulations. Federal regulators say the new digital currency platforms must adhere to existing rules, but industry players counter that it’s not that simple and that it’s time for Congress to pass new laws that are more tailored to crypto.
“This regulation by enforcement that we’re seeing is not the way to go because it doesn’t create good policy,” said Kristin Smith, who advocates for the cryptocurrency industry as executive director of the Blockchain Association. “Regulators — in particular the SEC — think that the laws and regulations are crystal clear and that they’re very easy to interpret. But for those of us on the other side of the table that are working in the industry and its ecosystem, the laws aren’t clear, and it’s very difficult to figure out how to apply them.”
Source: ‘Massive wake-up call’: Crypto faces growing legal crackdown – POLITICO
