Bloomberg: Insufficient Regulatory Power and Resources, US Crypto Legislation May Fall Short of Expectations

Odaily News According to a recent editorial by Bloomberg's editorial board, although the US Congress is pushing to establish a clearer legal framework for digital assets, aiming to support technological innovation while strengthening constraints on illegal activities, this legislative process may fall short of expectations given the current weakened power of regulatory agencies and their significantly insufficient enforcement resources.

The article points out that the "Genius Act" related to stablecoin regulation disperses several core responsibilities across different regulatory bodies. The Office of the Comptroller of the Currency (OCC), which plays a key role, has seen its enforcement capabilities significantly limited after experiencing layoffs and cybersecurity incidents. Meanwhile, the "Clarity Act" proposes adjusting regulatory divisions of labor, weakening the jurisdiction of the US Securities and Exchange Commission (SEC) and bringing most tokens under the supervision of the Commodity Futures Trading Commission (CFTC). However, the latter's budget is only a fraction of the SEC's, and it has long faced constraints in manpower and enforcement resources. Furthermore, the functions of the Consumer Financial Protection Bureau (CFPB), which previously handled consumer complaints in the crypto space, have been substantially reduced, further weakening the integrity of the overall regulatory network.

Bloomberg believes that against the backdrop of incomplete regulatory capacity, promoting the broader entry of crypto assets into public and institutional investment spheres may be counterproductive. If fraud and illegal activities continue to be exposed, market confidence and industry development could instead suffer. The article suggests that a unified trading regulatory framework should be established for digital assets like Bitcoin and Ethereum, which are difficult to categorize, with rules jointly formulated by the SEC and CFTC to strengthen market stability, information disclosure, and investor protection. The editorial concludes with a warning that until Congress truly provides regulatory agencies with sufficient authority, professional capabilities, and resources, the crypto market will remain in a state of "caveat emptor" (buyer beware) for the long term. (Bloomberg)