Patrick Daugherty, a partner at Foley & Lardner LLP, shared his perspective on the future of cryptocurrency regulation in the United States in a recent Cryptonews article titled “Patrick Daugherty Sees Positive Shift in Crypto Regulation Post-Elections.”
Daugherty, who heads Foley’s Digital Assets, Web3 & NFT Practice within the Innovative Technology Sector and recently joined the Global Digital Asset and Cryptocurrency Association Steering Committee, critiqued the current regulatory approach of the U.S. Securities Exchange Commission (SEC). He emphasized the necessity of clear and transparent regulations rather than a heavy reliance on enforcement actions.
“You can’t just always sue people without telling them what the law is first,” Daugherty remarked.
Addressing the challenges faced by industry participants under the current regulatory framework, Daugherty stressed the importance of striking a balance that fosters both regulatory oversight and innovation. He noted a prevailing sentiment within the legal community that the crypto industry is disproportionately targeted compared to other sectors.
“I think it is best for an agency to use its power to make rules and regulations in a thoughtful manner with notice and hearings and comment letters and interpretations and all these usual rudiments of lawmaking rather than investigations and lawsuits as a primary mechanism,” Daugherty added, expressing optimism about potential improvements in the regulatory landscape following the 2024 U.S. elections.
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