The U.S. Securities and Exchange Commission (SEC) and members of Congress held two separate meetings this week to discuss various topics in the cryptocurrency industry.
In response, BitcoinAssociation (BSV) Director of Global Public Policy Bryan Daugherty published an open letter calling for greater cooperation between the private and public sectors.
Dougherty emphasized the importance of distinguishing between cryptocurrency speculation and the utility of blockchain technology. He emphasized the need to strike a balance between protecting consumers and promoting innovation, especially as the industry approaches a crossroads in 2023.
Bitcoin Association has made several proposals to regulate the blockchain industry, including:
- Digital Asset Recovery: Invest in tools that allow miners and exchanges to recover lost or stolen digital assets through court orders. The service is available on the BSV blockchain and can be extended to other platforms.
- KYC Compliance: Require exchanges, custodial wallets, and service providers to comply with know-your-customer (KYC) and anti-money laundering (AML) rules, and strengthen licensing and regulation to protect investors.
- Engage with fiduciary entities: Participate in discussions with exchanges and fiduciary entities to discuss collaboration on consumer safety, cyber resilience, regulatory compliance, risk transparency, and enforcement of court orders.
- Cryptocurrency Casino Prevention: Implement regulatory oversight to prevent money laundering transactions, ensure full disclosure of investments, and require exchange operators to keep their assets separate from those of their customers.
- Economic Incentives: Encourage laws and government guidance to provide economic incentives for blockchain entrepreneurs, establish a sandbox program to allow the development of utility-based applications, and establish standards prior to full regulatory approval where necessary.
- Howey Test: Seeks to apply established legal standards and theories, such as the Howey Test, to remove bad actors and increase public trust and confidence.
Bitcoin Association’s open letter also emphasizes the importance of private and public sector collaboration in decision-making, ensuring that diverse perspectives inform regulatory decisions.
The letter concludes with a call for concerted efforts to create a regulatory framework that fosters innovation and protects consumers, thereby ensuring the long-term success of the blockchain industry.