Regulation
Patrick Daugherty on Cryptocurrency Regulation Shift After Election
Patrick Daugherty, partner at Foley & Lardner LLP, offered insights into the prospects of a shift in the U.S. regulatory approach to cryptocurrencies in Cryptonews’ article, “Patrick Daugherty Sees Positive Change in Cryptocurrency Regulation After Election.”
Daugherty, who leads Foley’s Digital Assets, Web3 & NFT practice within the firm’s Innovative Technologies sector and recently signed up The Global Digital Asset and Cryptocurrency Association’s steering committee has criticized the U.S. Securities and Exchange Commission’s current approach to cryptocurrencies, stressing the need for clear rules and regulations, rather than relying primarily on enforcement.
“You can’t always sue people without first explaining to them what the law is,” he said.
Daugherty highlighted the challenges industry participants face in the current regulatory regime, stressing the importance of having a balanced approach that supports both regulation and innovation. “Most people at the bar think that cryptocurrency was singled out for this,” he said. “We don’t see that happening in other industries. Not just now, but actually ever.”
“I think it’s better for an agency to use its power to create rules and regulations thoughtfully with notices and hearings and comment letters and interpretations and all these usual rudiments of the rulemaking process rather than investigations and lawsuits as the primary mechanism,” Daugherty added, noting that he foresees potential positive changes in the regulatory environment after the 2024 U.S. elections.
Daugherty’s comments also appeared in the Cryptonews article, “SEC Commissioner Peirce Suggests Reconsidering Ethereum ETF Staking.”