At a recent event, federal policy expert Dorothy DeWitt said that even with progress, regulations around cryptocurrencies could be a decade or more away.
DeWitt highlighted the lengthy process involved in creating the rules, citing the 2010 Dodd-Frank Act, which doesn’t have the CFTC until 2021 to pass its final rules. According to DeWitt, reaching consensus among individuals who are disinterested, have limited understanding, or find complex problems daunting is indeed challenging.
Additionally, the U.S. Securities and Exchange Commission (SEC) also faces jurisdictional battles with agencies like the CFTC when drafting regulations, noted James Park, a professor at UCLA School of Law. DeWitt previously served as the former chief counsel of the Senate and former director of regulatory affairs at the CFTC.
Veteran federal policy expert Dorothy DeWitt shed light on the complexity of the regulatory process at a recent event.
While acknowledging that progress has been made in the field of cryptocurrency regulation, DeWitt emphasized that the actual implementation of specific policies is likely to be a long-term endeavor, possibly exceeding a decade.
One of the major obstacles to reaching a consensus on cryptocurrency regulation lies in the differing perspectives and knowledge gaps among policymakers.
DeWitt said it can be difficult to reconcile individuals with limited interest or understanding of the subject matter, as well as those who may be intimidated by the inherent complexities of the cryptocurrency world. Reaching collective agreement among these various stakeholders constitutes a significant hurdle, further stretching the timeline for regulatory clarity.
James Park, a respected professor at UCLA School of Law, adds another layer of complexity to the regulatory environment.
He noted that while the SEC is actively involved in creating regulations, it faces jurisdictional disputes with the Commodity Futures Trading Commission and other regulators. The time-consuming nature of the regulatory process is further exacerbated by overlapping responsibilities and the need to navigate these intricacies of legal issues.
