Former Commodity Futures Trading Commission (CFTC) Chairman Timothy Massad has emphasized the need for the United States to clarify its laws regarding the cryptocurrency industry before progressing towards a global regulatory framework. Massad expressed these views during a December 16 episode of Federal Newswire's Lunch Hour podcast.
"Having a good global framework is always very useful and very important, but you can only get there through individual nations moving forward with their own laws," said Massad. "We have a global economy, but laws are still made at a national level. Nations have to decide what they're going to do and then try to coordinate, but we've done this before. I believe we can do it with digital assets, but the U.S. first needs to get its own policies in order a little bit more and then work with other countries."
According to former U.S. Senator Pat Toomey, Congress must "enact a clear framework for the sensible regulation of crypto." In an opinion piece published in September, Toomey criticized the U.S. Securities and Exchange Commission (SEC), led by Chair Gary Gensler, for attempting to assert jurisdiction over the crypto space without creating any "new, tailored rules" for the industry. He said that the SEC has been "regulated by enforcement," which he believes has stifled innovation in the U.S., while federal courts have increasingly ruled against the SEC's stance that most crypto tokens are securities.
Web3 software firm Consensys expressed concerns in an October letter about how the current regulatory environment in the U.S. is negatively impacting innovation. The letter argued that Web3 technologies represent the next generation of the internet, but obstacles to innovation in America provide other countries with opportunities to assume global leadership roles in Web3.
Fiat Republic, a Banking-as-a-Service firm, reported that U.S. crypto regulations are falling behind those of Europe. Regulators in both the United Kingdom and European Union (EU) began developing crypto regulations as early as 2017, with France emerging as a leader in recognizing blockchain technology's potential. By adopting a proactive approach, these regulators have managed to balance innovation with consumer protection.
The EU's Markets in Crypto-Assets (MiCA) legislation became what Ulam Labs described as the first "comprehensive legal framework in effect" when it was approved in 2023. These regulations aim to provide clarity across all EU member states for investors and businesses.
Massad previously served not only as CFTC chairman but also as Assistant Secretary for Financial Stability at the U.S. Department of the Treasury, according to information from the CFTC website. Before his government service, he was a partner at Cravath, Swaine & Moore LLP, where he assisted businesses with hedging exposures in derivatives markets.
