Coinbase’s Single Crypto Regulator Idea Draws Skepticism
Financial Services attorney Josias Dewey was quoted in a Roll Call article describing hesitation around the industry call for a single regulator of cryptocurrency markets. Proponents of a single regulator say it could help answer common questions about crypto products, such as whether they should adhere to rules governing a security or a commodity and how bank laws may apply. However, Mr. Dewey is skeptical that crypto is unusual enough to need a single regulator.
Congress would have to decide if such an agency would also need authority over tax and anti-money laundering requirements, he said. It is unclear if this would be efficient. Still, he said existing regulators could provide more clarity over crypto policy and help remedy a common complaint within the industry. One example is the sale of digital tokens by blockchain companies. There is a lack of clarity about what happens when the tokens stop acting like securities.
“There is no good pathway right now from going from the company that sold the tokens to raise capital and treated them as a security to transitioning to a system that uses the token for a utility,” Mr. Dewey said.