The Blockchain Association, led by Kristin Smith, has urged the U.S. Securities and Exchange Commission (SEC) to adopt a flexible approach to cryptocurrency regulation amid increasing scrutiny of the crypto industry.
Call for Regulatory Flexibility
The Blockchain Association is calling on the SEC to pursue a **flexible regulatory approach**, avoiding restrictive measures that might stifle innovation. Kristin Smith emphasized the need for changes in federal oversight to end the **'hostile regulatory regime'** that drives U.S. businesses abroad. She stated, 'We need to shift away from a **'hostile regulatory regime**.'
Impact on the Crypto Market
There is hope that a more flexible regulatory environment will support growth across crypto markets. **Major cryptocurrencies, including ETH and BTC**, could see expanded application scenarios, fostering innovation and market stability. The crypto community broadly welcomes these calls for **collaborative, less hostile regulation**, stressing the importance of a balanced framework that does not hinder growth while maintaining necessary compliance standards.
Economic Prospects
Predictions suggest that regulatory changes could bring **economic benefits**, including potential increases in **Total Value Locked (TVL)** in DeFi protocols and shifts in liquidity toward **U.S.-based platforms**. This could solidify the U.S.'s role as a leader in blockchain innovation.
The challenges facing the SEC require timely responses to maintain the nation's competitiveness in the rapidly evolving world of blockchain technology. The call for more flexible regulation could be a step toward restoring U.S. leadership in this field.
