Ji Hun Kim, President and Acting CEO of the Crypto Council for Innovation, has called on Congress to establish a comprehensive federal regulatory framework for digital assets. Kim's statement was made in a written communication on February 11.
"It is critical for Congress, including this Subcommittee, to continue and complete such efforts to provide the digital assets industry with the necessary clarity and certainty to ensure the U.S.'s continued growth and leadership in this space," said Hun Kim. "More still needs to be done to unwind the significant damage caused by the previous administration's ‘regulation by enforcement' approach. Congress must act now to ensure that the U.S. remains the leader in digital asset innovation."
According to Kim, the previous administration’s regulatory approach, led by SEC Chair Gary Gensler, created uncertainty that drove digital asset companies offshore. Testifying before the House Financial Services Subcommittee, he noted that under Gensler’s leadership, the SEC initiated more than 125 enforcement actions against digital asset firms but failed to provide clear regulatory guidance or rulemaking. Kim argued that this "regulation by enforcement" approach stifled innovation and left market participants uncertain about compliance. He emphasized that reversing this damage requires Congress to establish a comprehensive federal framework that provides clarity on digital asset regulation and jurisdictional authority between the SEC and Commodity Futures Trading Commission (CFTC).
Under Gensler’s tenure, the SEC collected a record $8.2 billion in financial penalties in fiscal year 2024, marking a 66% increase from the previous year. This total included fines from a broad range of enforcement actions, including cases related to securities fraud, digital asset violations, and market misconduct. According to the Wall Street Journal, the SEC’s enforcement division pursued an aggressive stance on regulatory compliance, with digital asset firms among those facing penalties amid ongoing legal disputes over the classification of cryptocurrencies.
Kim is currently leading the Crypto Council for Innovation (CCI), a global alliance dedicated to advancing digital assets through research, education, and advocacy. Before assuming this role, he served as CCI's Chief Legal & Policy Officer. Prior to joining CCI, Kim was General Counsel and Head of Policy & Regulatory Affairs at Gemini, a global digital asset exchange and custodian.
The U.S. Securities and Exchange Commission (SEC) was established in 1934 under the Securities Exchange Act to regulate financial markets, enforce securities laws, and protect investors. It oversees public companies, securities exchanges, and investment firms to ensure compliance with reporting and anti-fraud regulations. In recent years, the SEC has extended its oversight to digital assets and cryptocurrency markets but has yet to establish a dedicated regulatory framework for this industry.
