Consensys Letter to the Future U.S. President: Calling for Clear Regulation and Collaboration
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Consensys Letter to the Future U.S. President: Calling for Clear Regulation and Collaboration
Regardless of the final election outcome, hindering crypto innovation is not in America's best interest.
Navigating Web3 tides with focused insightsSource: Consensys
Translation: Odaily Planet Daily Golem
Editor's note: The final results of the 2024 U.S. presidential election will be announced on November 5. According to prediction market data from Polymarket, Donald Trump currently has a 59.9% chance of winning, while Kamala Harris has a 40% chance. The crypto industry is among the most attentive groups regarding the U.S. election, as the elected president’s regulatory stance and policies toward cryptocurrencies will significantly impact the entire sector’s development. In the past, many crypto companies have faced stringent enforcement actions by U.S. regulators, including Binance, Coinbase, Uniswap, and Consensys.
Given this context, and in hopes of improving the regulatory environment for digital assets, Consensys has published an open letter to the next President of the United States in The Wall Street Journal. The letter calls not only on policymakers but also on American voters to take action. Below is Odaily Planet Daily’s full translation of the letter for readers’ reference.
Dear Mr./Madam President:
We write to you with a clear conviction: a vibrant and innovation-friendly environment for digital assets is essential to the future of the American economy and its global technological leadership.
Regardless of the outcome of the upcoming U.S. presidential election, we are deeply concerned about the current approach the United States has taken toward regulation and enforcement in the digital asset space. Contrary to the mistaken belief that this technology is unimportant or fleeting, blockchain and cryptocurrencies have gained widespread adoption across America—and the world—despite the absence of a clear regulatory framework and despite frequent, arbitrary, and disingenuous enforcement actions against organizations that strive to comply fully with the law. This environment creates fertile ground for bad actors to thrive.
To encourage innovation, create next-generation internet jobs in the United States, protect American investors and national interests, and promote technological collaboration, we urge you to adopt the following three essential measures when considering your administration’s position on the blockchain industry and the millions of Americans involved in it.
Provide Regulatory Certainty and Transparency, and Avoid Arbitrary or Overreaching Enforcement Against Good Actors
While some continue to claim that the blockchain industry seeks to evade all regulation, this is entirely false. For a thriving crypto ecosystem, nothing is more important than a clear and workable regulatory framework—one that defines how intermediaries interacting with customers should operate.
Yet compared to other OECD member countries, the United States clearly lacks coherent administrative guidance. In the absence of such clarity, companies and developers are left in the dark, forced to defend the legitimacy of their livelihoods through ad hoc enforcement actions—even when they are willing to comply with well-defined rules and regulations.
The next administration and its relevant regulatory agencies must work with Congress to clearly and definitively establish lawful pathways for participating in the Web3 ecosystem. This would empower entrepreneurs to operate with confidence, make meaningful contributions to the U.S. economy, and usher in the next generation of internet technologies.
Promote Greater Consumer Protection and Guard Against Illicit Activities
While illicit activity involving digital assets remains relatively low compared to traditional finance or physical cash, the decentralized nature of blockchain software does present new security challenges. Addressing these requires enhanced education around the inherent risks of decentralized finance, greater public-private collaboration, information sharing, and increased global harmonization in regulating exchanges.
A significant paradox exists: blockchain technology itself holds unique advantages in combating financial crime. It offers opportunities to improve data security, trace criminal activity, and stop wrongdoing at its source. The blockchain industry stands ready to collaborate with the next president to explore how the U.S. government can leverage this powerful technology to help deter bad actors.
Incentivize Ongoing Innovation in Blockchain Technology
We stand at a pivotal moment in the global development of blockchain technology. This industry has the potential to lead us into the next phase of the internet—one where content, identity, ownership, security, and accessibility are controlled directly by users. Any barriers to innovation will allow other nations—including some with adversarial interests—to surpass us, leaving America in a digital world dominated by others.
Therefore, the next president must do everything possible to encourage the development of Web3 technologies, including creating research and development opportunities, reducing unnecessary bureaucratic hurdles, and investing in infrastructure to support its growth.
The foundational principles of cryptocurrency are rooted in American values: individual freedom, economic opportunity, and privacy. The role of the crypto industry in advancing progress, accountability, and fair access should be protected and nurtured by regulators. We respectfully urge you to adopt these key measures to create a more hopeful future for these technologies—and for all those who depend on them for their livelihoods.
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