Is the SEC a bad cop? CoinRoutes CEO Dave Weisberger breaks down crypto regulation in the US

in episode 27 hash out, CoinRoutes CEO Dave Weisberger joins host Elisha Owusu Akyaw, also known as GhCryptoGuy, to discuss the current state of cryptocurrency regulation in the United States. Weisberger explains how the U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) approach regulations and what they mean for the rapidly evolving cryptocurrency space.

Weisberg began the podcast by talking about the state of regulation. He believes that the problems in the United States stem from the lack of clear regulations and rules, leading regulators to apply different rules at will. Weisberger added that the problem stems from the existence of two different regulatory agencies (SEC and CFTC) that play different roles in the financial system, roles that may overlap depending on the cryptoassets involved and the assets under scrutiny. Example.

More recently, the SEC has taken the initiative to lead attempts to regulate cryptocurrencies, resulting in several projects facing multiple court cases in 2023. For most industry players, Weisberger explained, there was no backlash against regulation; instead, the argument was that the SEC’s rules, created in the 1940s and updated in the 1970s, should not be used to regulate new assets category and technology-oriented products. He further describes the situation from the perspective of a space builder:

“We’re in a situation where the industry is saying, if you call me a security, it’s a death sentence. Not because the regulation is bad, but because the rules themselves stifle innovation.”