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Opinion: The current U.S. regulatory authorities are unable to effectively regulate cryptocurrencies

Opinion: The current U.S. regulatory authorities are unable to effectively regulate cryptocurrencies

Bitget2024/05/30 23:16

In "Understanding DeFi", lawyer and strategic consultant Alexandra Damsker pointed out that due to the changing nature of tokens, current regulatory bodies such as the U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) are unable to effectively regulate cryptocurrencies. Damsker explained that existing regulatory systems assume regulated projects are static, while tokens are dynamic, capable of having multiple functions among different holders or even within a single holder's possession. This dynamic nature makes it difficult for any existing regulatory system to fully apply. Damsker further noted that attempts to incorporate tokens into traditional regulatory frameworks can only provide limited protection and may limit innovation. Therefore, she called for new regulatory methods designed for tokens and their dynamic characteristics in order to better adapt to the rapidly developing technological environment.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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