In a series of tweets, Jake Chervinsky stated that 2022 was the worst year in the history of cryptocurrencies: crypto lenders went bankrupt one after another, and then the FTX exchange crashed altogether. Its founder, Sam Bankman-Fried, was considered an important figure in the crypto space, so the fiasco of his exchange greatly damaged the reputation of the industry.
However, what happened does not mean the decline of cryptocurrencies in the United States, on the contrary: there are people in the government who are ready to support the industry and defend its interests, Chervinsky assures. However, he finds it unlikely that Congress will focus on crypto regulation.. The reason is the ideological gap between the Republicans in the House of Representatives and the Democrats in the Senate, that is, now the Congress is divided into two camps.
Blockchain Association expert believes that regulators are expanding their powers beyond recognition, trying to take over the functions of Congress. The US Federal Reserve System (FRS), the Federal Deposit Insurance Corporation (FDIC) and the US Office of the Comptroller of the Currency (OCC) oppose banks engaging in any activity related to crypto assets, servicing dollar accounts of customers making cryptocurrency transactions, provided storage services for digital assets. Chervinsky called it bad policy and technological discrimination that limits competition and user choice.
The top manager of the Blockchain Association spoke out and called the US Securities and Exchange Commission (SEC) the main opponent of cryptocurrencies, which considers every asset that has a market price to be a security, and any commercial service to be a securities transaction.
The lawyer is convinced that the SEC does not have the authority to comprehensively regulate cryptocurrencies and cannot obtain this power through coercive measures, without the consent of Congress. Regulators should consider public advice before finally adopting new rules for regulating cryptocurrencies. Chervinsky recalled that participants in the crypto industry can sue regulators who exceed their powers or violate constitutional rights.
“Politics is carried out in all three branches of government, and we have ignored the judiciary for too long.. The concept of cryptocurrencies is to fight for civil liberties, and this may require litigation. Our best allies may be in the courts. They need to be found in order for cryptocurrencies to flourish in the United States, ”concluded Jake Chervinsky.
A few years ago, Czerwinski expressed skepticism that the SEC would approve the launch of an ETF linked to bitcoin. In 2021, a lawyer criticized the infrastructure project, calling it a blow to the DeFi industry.