Blockchain Association Advocates Flexible SEC Crypto Regulation

Kristin Smith, CEO of the Blockchain Association, has called on the SEC to adopt flexible rules for cryptocurrency regulation amidst its proposed sweeping changes. Industry leaders believe that restrictive regulation might hinder technological advancements and competitiveness.

These calls come in the wake of unprecedented regulatory scrutiny, highlighting the need for federal oversight restructuring to support innovation.

Blockchain Association Pushes for Regulatory Flexibility

The Blockchain Association urges the SEC to pursue a flexible regulatory approach, avoiding restrictive measures that might stifle innovation. With rapid blockchain technology evolution, Kristin Smith emphasizes the need for federal oversight changes to end the "hostile regulatory regime". Such adjustments could stop offshoring of U.S. businesses. Smith was quoted saying, "We need to shift away from a 'hostile regulatory regime' that drives U.S. businesses abroad."

A more flexible regulatory environment is anticipated to foster growth across the crypto markets. Major cryptocurrencies, including ETH and BTC, could potentially see expanded application scenarios, fostering innovation and market stability. This move aims to balance innovation with compliance.

The crypto community broadly welcomes these appeals, advocating for collaborative, less hostile regulation to foster innovation. Industry leaders stress the importance of a balanced framework that does not hinder growth while maintaining necessary compliance standards.

U.S. Regulatory Change Could Boost Crypto Market

Did you know? In past years, the SEC faced backlash over its stringent rules on crypto, which many believed drove innovation offshore. Calls for policy shifts aim to bring the U.S. back as a leading player in the blockchain sector.

Ethereum (ETH) is currently priced at $1,796, with a market cap of 216,835,087,256. ETH has experienced a 2.14% decrease in the past 24 hours, with a trading volume of $9.91 billion, as per CoinMarketCap data. Its price has fallen 35.90% over the past 90 days, reflecting the global market's volatility.

Insights from the Coincu research team suggest potential economic benefits from regulatory flexibility, highlighting possible increases in Total Value Locked (TVL) in DeFi protocols and liquidity shifts toward U.S.-based platforms. Enhanced collaboration may cement the U.S.'s role as a blockchain innovation leader. For more updates, follow Coincu on X.