Sadeghi Quoted on Congressional Calls for Cryptocurrency Regulation


Sadeghi Quoted on Congressional Calls for Cryptocurrency Regulation

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Roll Call

Partner Kayvan Sadeghi was quoted on recent Congressional calls for consumer and investor protections in the FinTech industry and U.S. Senator Elizabeth Warren’s letter to the U.S. Securities and Exchange Commission (SEC) on potential agency action. Kayvan said that Warren’s letter focuses on one side of the issue.

“Warren’s letter raises a lot of good questions about digital assets, including how to regulate decentralized organizations operating on a public blockchain,” he said. “But the tenor of the letter suggests the focus is on bad actors, and tools to address fraud and other misconduct already exist.”

Kayvan said that the paths to legal compliance when launching digital assets are still too ambiguous, expensive, and too slow to meet the rapid pace of innovation.

“The problem isn’t a need for more authority to pursue bad actors; we need to provide a clearer path for the good actors,” he said, adding that a difficult, slow, and uncertain environment can allow those who don’t care about the rules to race ahead.

“The desire to protect consumers and investors is important and shared by most in the industry,” Kayvan said. “The U.S. has a chance to be a leader in this area, and we shouldn’t lose sight of that.”

Kayvan noted that Congress’ push to assemble a group of industry stakeholders to gather more input is a positive sign.

“There is a need for more clarity in regulation so any efforts in that direction are positive,” he said, adding that a formal process input process could provide more transparency and ideally would offer an opportunity for all voices to be heard.

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