Dr. Emin Gun Sirer, the founder and CEO of Web3 solutions company Ava Labs, said during a Congressional hearing on digital assets that “responsible” crypto industry participants support “sensible” regulations for the industry and are eager to offer input to legislators to help create them.
During a June 13 hearing, titled “The Future of Digital Assets: Providing Clarity for the Digital Asset Ecosystem,” lawmakers discussed the Digital Asset Market Structure Discussion Draft and heard testimony from witnesses including Coy Garrison, an attorney and former counsel to SEC Commissioner Hester Peirce, and Thomas Sexton, the president and CEO of the National Futures Association.
“Responsible actors in the blockchain space want sensible laws and regulations that incentivize growth and good behavior, punish bad actors, and elevate the users of blockchain networks. The community stands ready to provide guidance to policymakers to achieve those aims,” Sirer said in his testimony at the hearing.
The hearing came the week after the SEC filed lawsuits against leading crypto exchanges Binance and Coinbase, accusing the companies of violating securities laws, according to the SEC.
In a February interview with the Austin Journal, Coinbase CEO Brian Armstrong said he welcomes regulations and believe they will play a key role in restoring trust to the industry that was damaged by crypto exchange FTX's high-profile bankruptcy last fall, but that politics is proving to be a barrier in moving regulations forward.
“Some regulators don’t want regulatory clarity for crypto, because they are actually trying to curtail the industry,” Armstrong said. “Harsh rhetoric and regulation by enforcement, without creating clear rules for everyone to follow, has pushed much of the industry outside the U.S., which has resulted in American investors and businesses being harmed.”
Armstrong wrote in a December blog post that he believes regulation that provides clarity and a level playing field while leaving room for innovation will enable the crypto industry to reach its potential in benefitting other industries.
Binance outlined its position on compliance in a March blog post, which said that although some in the crypto industry might believe that regulation contradicts the decentralized nature of crypto, Binance welcomes "the increasing involvement and actions from regulatory bodies and governments in the crypto space." Binance said its goal has always been to protect users and encourage innovation, and it believes that greater regulatory guidance will ultimately serve to help grow the crypto industry.
The blog post quoted Binance CEO Changpeng Zhao (CZ), who said, "Before there were clear guidelines for the industry, we have always held Binance to the highest standard to prioritize our users' best interests — a goal that we share with regulators around the world."
CZ has welcomed the steps taken by governments and regulatory authorities around the world as they take steps toward regulating crypto. When the Financial Action Task Force (FATF), a global organization dedicated to combatting money laundering, released its latest annual report, CZ said in a tweet that Binance "shares their view that strong standards are critical to the future of this industry, especially on pressing issues like money laundering and financial crime... Further exploration was made on how technology can play a key role in detecting suspicious financial activities, including money laundering. This detection is essential to creating and maintaining a safe ecosystem of money. Transparent blockchains are great tools too... Global standards provide clarity and consistency - key factors of effective regulation, but they can only be helpful if implemented across the board."