Web3 software firm Consensys has expressed concerns about the current regulatory environment for the U.S. cryptocurrency industry, stating that it is detrimental to innovation. The company shared its views in an October 23 letter addressed to the next president, outlining recommendations for future policy directions.
"We write to you with a clear conviction: that a vibrant, pro-innovation environment for digital assets is crucial to the future of the United States economy and its global technological leadership," said Consensys. "Regardless of the outcome of the upcoming U.S. presidential election, we are deeply concerned by the path that America has taken regarding digital asset regulation and enforcement. Contrary to the mistaken belief that this technology is unimportant or ephemeral, blockchain and cryptocurrency have been embraced across the United States (and the world), even as the lack of a regulatory framework in the U.S. and the ongoing threat of often haphazard and disingenuous enforcement actions against organizations that have carefully followed the law, leaves room for bad actors to proliferate. In the name of spurring innovation, creating the next generation of internet jobs in the U.S., protecting U.S. investors and interests, and promoting technological cooperation, we urge you to adopt three key imperatives when considering your administration's stance on the blockchain industry and its millions of participants nationwide."
According to Consensys, the incoming U.S. president should "provide regulatory certainty and transparency that avoids haphazard or overreaching enforcement against good actors." The firm emphasized that participants in the crypto industry are eager for clear rules to foster confident innovation and meaningful economic contributions. Furthermore, Consensys recommended that the next administration should "promote greater consumer protection and defend against illicit activity." While illicit activities within the decentralized ecosystem are relatively minor, there remain bad actors exploiting emerging technologies. With enhanced education and public-private partnerships, blockchain could serve as a tool to combat such activities.
Consensys also urged the next administration to "incentivize ongoing innovation in the blockchain space." The company argued that Web3 technologies represent the next generation of the internet but noted that obstacles to innovation in the U.S. allow other countries to potentially assume global leadership roles in Web3. The firm suggested enhancing research and development opportunities, removing "unnecessary bureaucratic hurdles," and supporting infrastructure essential for Web3 development. Consensys said that cryptocurrency is rooted in "foundational American values" like individual freedom, privacy, and economic opportunities, which should be embraced by the U.S. government.
CBS reported that between 18 million and 50 million Americans use cryptocurrency. A survey conducted by Gemini indicated that 73% of respondents said a candidate's stance on crypto might influence their voting decisions.
Republican presidential candidate Donald Trump has expressed support for the crypto industry if elected, endorsing Bitcoin mining projects, non-fungible tokens (NFTs), and a decentralized finance project called World Liberty Financial, according to Decrypt. Democratic presidential candidate Kamala Harris said in October her support for "a regulatory framework for cryptocurrency and other digital assets so Black men who invest in and own these assets are protected."
Consensys is a blockchain and Web3 software company founded in 2014. Its product suite includes an NFT platform, Infura, Linea, and Diligence.
