Consensys, one of the leading blockchain infrastructure providers, said the next U.S. president should prioritize clear cryptocurrency regulations. The firm sent out a public letter calling for oversight that encourages innovation without over-infringing on consumers.
If the blockchain ecosystem is not regulated, improper activities that can be fraudulent could occur, warned Consensys.
The company highlighted how current U.S. crypto regulations are too fragmented and exploited by bad actors.
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Consensys said these inconsistencies in regulatory frameworks harm legitimate businesses and place uncertainty on legal businesses. The company urged Congress and regulatory bodies to form a united and supportive regulatory environment.
Consensys affirms that the U.S. can become a global leader in blockchain technology by creating rules.
Such clarity would protect consumers and help keep the country in the game with Europe and Asia, where uptake is increasing fastest. Regulatory consistency is critical to the trust and accountability that Consensys sees as integral to building out the emerging Web3 world.
Consensys Pushes for Balanced and Transparent Regulation
In its letter, Consensys expressed concerns over recent enforcement actions that have disrupted the operations of legitimate blockchain businesses.
The company also said that unclear regulations have led to investigations, which have been bad for innovation. It cited regulatory overreach, citing ongoing issues with the Securities and Exchange Commission (SEC).
Earlier Consensys was engaged in a lawsuit with the SEC over its investigation into Ethereum (ETH) as a security. Despite the withdrawal of the case by the SEC Consensys stated that it aims to continue with the lawsuit.
By continuing this legal battle, the company aims to clarify the scope of the SEC’s regulatory authority. Consensys argues that disingenuous enforcement actions are not only harmful to innovation but also discourage investment in U.S.-based blockchain companies.
Instead, the letter praised a regulatory approach that was both fair and transparent, with enforcement balanced with guidance.
According to Consensys, this would create an environment where businesses would thrive while protecting consumers from fraud. The company asks the next administration to consider these when forming future rules.
Consensys Calls for U.S. Leadership in Blockchain Regulation
Consensys also raised concerns about global competition in blockchain technology, particularly from regions like Europe and Asia. However, these regions have begun developing clearer regulatory frameworks around their blockchain sector over the past few months.
Consensys warned that the country could only stay caught up with such clarity in the US.
The company says crypto regulations in different European countries could be more precise for investors, adding that other problematic issues include the need for more consistency.
Earlier this year, digital asset firm 21Shares made similar calls to the European Securities and Markets Authority (ESMA) for clearer guidelines. As per Consensys, global regulatory alignment is crucial to the growth of the blockchain industry.
With such regulatory gaps, the U.S. can lead blockchain innovation while protecting its consumers. In a letter to the following U.S. administration, Consensys urged that the Web3 space advance equitable access and accountability.
The company’s appeal also demonstrates the extent to which regulatory challenges must be preempted in a rapidly evolving industry.
