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The Current US Crypto Regulatory System is Unworkable: Expert

Published 06/12/2023, 18:22
Updated 06/12/2023, 18:45
The Current US Crypto Regulatory System is Unworkable: Expert
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  • Austin Campbell told the US Congress that the existing crypto regulatory model is unworkable.
  • Campbell thinks the unclarity within the US digital assets regulation sector is pushing crypto practitioners offshore.
  • Campbell noted that most people in Congress do not understand the mechanical things they do with bills and laws.

According to Austin Campbell, founder and managing partner of Zero Knowledge Consulting, the current regulatory system for practitioners in the digital assets industry is unworkable. Campbell stated this while testifying before the U.S. Congress, for which he was later applauded by fellow crypto advocate John Deaton in an interview.

According to Campbell, also a professor at Columbia Business School, the lack of clarity within the U.S. digital assets regulation sector is working against the country. He noted that most practitioners are moving offshore and settling in regions with better-defined regulatory frameworks.

In a discussion with Deaton, Campbell argued that most people in Congress do not understand the mechanical things they do with bills, laws, and many other resolutions. According to him, many Congress members follow a handful of key leaders on such matters, and are short of in depth knowledge on the issues. Hence, they find it difficult to defend their positions on crypto-related matters, where they have limited understanding.

The professor also noted that many crypto practitioners go into the industry through one specific angle and only understand things from a single perspective. He likened it to understanding only how the brakes of a car work without paying attention to other aspects of the automobile. According to him, that could be misleading in a multidisciplinary sector.

Concerning the inconsistencies on who is responsible for crypto regulation in the U.S., Campbell told Deaton that the U.S. has an unusual framework with multiple regulators in competing jurisdictions. However, he noted that other regions with unitary regulatory systems have not done a better job than the U.S..

According to Campbell, the U.S. does not have a single regulator capable of handling the entire crypto industry. The reason behind this, as he explained, is that crypto is complex and multidisciplinary. The professor suggested that instead, the right way forward is a compartmentalized approach to crypto regulation, where different regulators are responsible for specific sectors of the crypto industry.

The post The Current US Crypto Regulatory System is Unworkable: Expert appeared first on Coin Edition.

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