On Episode 27 of Hashing It 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 fast-evolving cryptocurrency space.
Weisberger addresses the state of regulation at the start of the podcast. According to him, the problem in the United States stems from a lack of clear regulations and rules, leading to regulators arbitrarily applying different rules. Weisberger adds that the issue stems from the existence of two different regulators — the SEC and CFTC — which have different roles in the financial system that may intersect depending on which crypto assets are being referred to and the use cases under scrutiny.
Recently, the SEC took the initiative to lead the attempt to regulate cryptocurrencies, resulting in multiple court cases against several projects in 2023. Weisberger explains that for most industry players, there isn’t a strong resistance to regulations; rather, the argument is that the SEC’s rules were established in the 1940s and updated in the 1970s and should not be used to regulate a new asset class and technology-oriented products. He further describes the situation from the perspective of builders in the space:
“We have a situation where the industry says if you call me a security, it is a death sentence. Not because regulation is bad but because the rules themselves will strangle the innovation.”
Hashing It Out host Owusu Akyaw asks if regulating cryptocurrencies is challenging in the United States, to which the CoinRoutes CEO responds that the answer should be no, but that it’s a complex situation. He uses the analogy that remodeling a house is more difficult than building a house from scratch. According to Weisberger, regulators need to rethink their approach toward crypto regulations.
On whether or not cryptocurrency is an issue voters care about in the U.S., Weisberger argues that the freedom to invest and engage in economic activity and the U.S. potentially losing competitiveness in a fast-growing industry are issues that make cryptocurrency an important voting issue.
Canterbury MP Rosie Duffield has resigned from the Labour Party.
The 53-year-old MP is the first to jump ship since the general election and in her resignation letter criticised the prime minister for accepting thousands of pounds worth of gifts.
She told Sir Keir Starmer the reason for leaving now is “the programme of policies you seem determined to stick to”, despite their unpopularity with the electorate and MPs.
In her letter she accused the prime minister and his top team of “sleaze, nepotism and apparent avarice” which are “off the scale”.
“I’m so ashamed of what you and your inner circle have done to tarnish and humiliate our once proud party,” she said.
Since December 2019, the prime minister received £107,145 in gifts, benefits, and hospitality – a specific category in parliament’s register of MPs’ interests.
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Ms Duffield, who has previously clashed with the prime minister on gender issues, attacked the government for pursuing “cruel and unnecessary” policies as she resigned the Labour whip.
She criticised the decision to keep the two-child benefit cap and means-test the winter fuel payment, and accused the prime minister of “hypocrisy” over his acceptance of free gifts from donors.
“Since the change of government in July, the revelations of hypocrisy have been staggering and increasingly outrageous,” she said.
“I cannot put into words how angry I and my colleagues are at your total lack of understanding about how you have made us all appear.”
Ms Duffield also mentioned the recent “treatment of Diane Abbott”, who said she thought she had been barred from standing by Labour ahead of the general election, before Sir Keir said she would be allowed to defend her Hackney North and Stoke Newington seat for the party.
Her relationship with the Labour leadership has long been strained and her decision to quit the party comes after seven other Labour MPs were suspended for rebelling by voting for a motion calling for the two-child benefit cap to be abolished.
“Someone with far-above-average wealth choosing to keep the Conservatives’ two-child limit to benefit payments which entrenches children in poverty, while inexplicably accepting expensive personal gifts of designer suits and glasses costing more than most of those people can grasp – this is entirely undeserving of holding the title of Labour prime minister,” she said.
Ms Duffield said she will continue to represent her constituents as an independent MP, “guided by my core Labour values”.