Amid its ongoing lawsuit with the US Securities and Exchange Commission (SEC), Blockchain software firm Consensys published an open letter to the future US President urging a clear and welcoming regulatory approach to the crypto industry to foster a pro-innovation environment.
‘Dear Future President’
Consensys, the blockchain and Web3 company founded by Ethereum’s co-founder Joseph Lunin, shared an open letter to the next US President expressing their concern about the country’s crypto regulation and enforcement.
The company noted the importance of the growing industry and the milestones achieved, including crypto-based spot exchange-traded funds (ETFs), despite an unwelcoming and unclear regulatory framework.
In the letter, published in The Wall Street Journal, the blockchain firm urged the future US President to adopt three key imperatives when considering their stance on the industry, which would affect millions of participants nationwide.
Excerpt from Consensys' open letter. Source: Consensys
The first key point tackles the country’s regulations, asking the next US leader to provide regulatory certainty and transparency that avoids overreaching enforcement against crypto companies trying to comply with the rules.
Consensys refuted the narrative that the sector seeks to avoid regulations. Instead, it noted that a clear and workable regulatory framework is crucial to a flourishing crypto ecosystem.
Additionally, the firm highlighted that a collaborative effort between the next administration, the regulatory agencies, and Congress to provide a better regulatory approach will allow entrepreneurs to work confidently within the US territory.
Working with Congress, the next administration and its relevant regulatory agencies must provide –with clarity and finality– pathways for legitimate participation in the web3 ecosystem. This will allow entrepreneurs to operate confidently, contribute meaningfully to the U.S. economy, and usher in the next generation of Internet technology.
In the letter, the blockchain firm also stressed the importance of consumer protection as its second point. Consensys remarked on the need for better education on the risks of decentralized finance (DeFi), urging for a “public-private collaboration” and more global uniformity in exchange regulation.
The third key point asked the next US president to incentivize ongoing innovation in the blockchain space. The company stated that the winner of the November elections must do “everything in his or her power to encourage web3 technological development,” including reducing unnecessary and bureaucratic hurdles, fostering opportunities for research and development, and investing in infrastructure that supports the crypto industry’s evolution.
Consensys Ongoing Crypto Battle
Consensys open letter comes amid its ongoing battle with the SEC. In April, the company sued the US regulation for “unlawful seizure of authority” over Ethereum (ETH), seeking that the Court would classify the cryptocurrency as a non-security and declare any investigation or enforcement on the company over ETH would exceed the SEC’s authority.
The lawsuit was dismissed last month by Judge Reed O’Connor of the US District Court for the Northern District of Texas. The judge argued that the lawsuit was unwarranted because it lacked immediate danger after the US regulator dropped its “Ethereum 2.0” investigation earlier this year.
Nonetheless, the SEC filed a lawsuit against Consensys after dropping the investigation. In June, the Commission charged Consensys for allegedly offering and selling thousands of “unregistered securities” through Metamask Staking and operating as an unregistered broker through Metamask Staking and Metamask Swaps.
Consensys called out US policymakers and voters to act and “finally put an end to the lack of clear rules and SEC overreach stifling digital innovation in our sector almost daily.”
Ethereum (ETH) is trading at $2,532 in the weekly chart. Source: ETHUSDT on TradingView