by Jonathan Jachim, Head of Kraken Global Policy and Government Relations
Just a few weeks ago I had the privilege of testifying before the U.S. House Financial Services Subcommittee on Digital Assets.
It is now difficult to exaggerate the magnitude of opportunities to complete the US market structure law and create a clear regulatory framework for crypto.
This is not merely about policy reform. It is about securing our markets and advancing innovations that can enhance our financial services.
A moment of bipartisan consensus
After years of legislative debate, we are at the moment when this 119th Congress can stimulate the nonpartisan consensus needed to advance US digital asset policy.
The long journey through industry engagement, education, hearings, legislation drafting and discussions demonstrates serious bipartisan cooperation.
Senators Ramis and Gilibrand laid the strong foundation for meaningful, bipartisan policy development in Congress with the introduction of legislation in early 2022, and last year the House passed 21.
We have seen strong agreements in Congress on enacting a centralized intermediary regulatory framework. This protects consumers while enabling blockchain-based innovation.
Why crypto market structure laws are important
The current patchwork and pre-regulation of state-level regulations, as well as enforcement, have curtailed both innovation and consumer protection. A cohesive market structure framework for centralized intermediaries paves the way for clearer and more consistent rules.
Our industry deserves a system that not only ensures consumer benefits, but also recognizes the unique dynamics of digital assets. Our bipartisan efforts must peak with laws that establish a durable framework. In doing so, we can ultimately eliminate the ambiguity of regulations that have long hindered advances in the crypto space.
It’s time to catch up with other parts of the world
Globally, nations are rapidly adapting to the digital revolution with well-balanced, advanced regulations. The EU, the UK and Canada, together with other major and emerging markets, are all evidence that effective regulation is achievable.
There is a clear and important opportunity for the US to accelerate and finalize this bipartisan law this year, with administrations, independent federal agencies and Congress. A unified regulatory framework not only harmonizes US regulations with international standards, but also allows US regulators to engage more effectively at the global stage.
We must work together to act now
The time for council action is now. Kraken is committed to defending a legislative framework that reconciles the need for freedom and regulatory clarity, essential to technological advancement. The future of US digital assets depends on the ability to work across party lines.
We are ready to work with Congress, regulators and industry partners to finalize our regulatory framework that promotes responsible innovation.
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