The issue of cryptocurrency regulation around the world is now more pressing than ever. It was especially clear at the end of last week, when SEC Chairman Gary Gensler said that PoS cryptocurrencies could be securities. This comes just days after the consensus algorithm was adopted by the Etherium network, the largest coin by market capitalisation after Bitcoin.

SEC chief Gary Gensler

The reason cryptocurrency connoisseurs are unhappy with the situation in the first place is that the agency uses outdated documents, which were created long before Bitcoin and even the internet were launched, to define securities. This is why the community is asking the authorities to create a clear regulatory framework for the digital asset industry. This would also attract companies, create jobs and end up with additional tax revenue for the country.

How cryptocurrency is regulated

The publication of the document was commented on by the White House’s chief economic policy advisor Brian Dees. Here’s his rejoinder, as cited by The Block.

The White House is laying the groundwork for a thoughtful, comprehensive approach to mitigating the risks of digital assets and taking advantage of them. We remain committed to working with allies, partners and the crypto community to shape the future of this ecosystem.

Brian Dees, chief economic policy advisor to the White House

But much of the cryptocurrency community, to which Dees referred, criticised the White House initiative. They said lawmakers are not providing a clear path forward for US policy on digital assets – at least for now. This reaction is predictable given that the report calls on the president’s administration to “aggressively implement” new regulations in the industry.

Officials coordinating the report said during a press conference briefing that existing laws governing the financial sector are sufficient to regulate digital assets as well. This is in direct contrast to recent assertions by various cryptocurrency executives in Washington.

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Representatives from the Blockchain Association said the report lacked “clear recommendations” regarding the regulation of crypto. Blockchain Association executive director Christine Smith called the document a “missed opportunity to consolidate US leadership” in overseeing the crypto industry. That said, the report itself could be described as “outdated and unbalanced”, the expert said.

Bitcoin exchange rate

But the CEO of major cryptocurrency exchange Binance, Changpen Zhao, reacted positively to the publication: he praised the White House for trying to create a groundbreaking infrastructure to regulate cryptocurrencies. Here is a translation of his tweet published by reporters.

It’s good to see the US moving towards a proposed framework for regulating the cryptocurrency environment. Getting it right will help protect consumers, markets and spur responsible innovation. The US approach to cryptocurrency regulation will bring much needed consistency and clarity to the current mishmash of state laws and regulations.

Zhao’s words were perhaps the only notable positive reaction. Opposition Republicans, meanwhile, were left without positive impressions. Here, for example, is a quote from Patrick McHenry, the party’s top member on the House Financial Services Committee.

Reports cannot replace legislative clarity. With clear rules, this innovative technology [cryptocurrencies – editor’s note] could revolutionise our financial markets, modernise our payment system infrastructure and provide new opportunities for consumers.

In other words, experts see the digital asset industry as promising for various economies as well, which is why it should be of interest to governments. However, in the absence of clear regulations, developers may avoid activity in certain territories. And this is exactly the kind of practice that American digital-asset fans want to get rid of.

Binance chief executive Changpen Zhao

A similar statement was made by McHenry’s colleague, Senator Pat Toomey.

While I appreciate the Biden administration’s involvement with digital assets, real regulatory clarity will require much more than just reports. Clearly, a comprehensive, tailored system is needed to allow these new technologies to flourish with appropriate restrictions on consumers.

In other words, the US government is already expected to be proactive, not just in the abstract to recognize the crypto market as an important phenomenon. Its problems have already been discussed in Congress, with the heads of the top crypto platforms involved in the discussion. So the recent White House document did not bring any clarity to the state of affairs, but just fueled the impatience of the masses.


We believe that it is indeed time for the authorities of various countries to create modern legal frameworks for digital assets. This way, they will save blockchain start-ups from potential problems and allow cryptocurrency companies to operate with more clarity. Of course, making such a framework will not be easy, but regulating coins according to laws from the last century is a clear mistake.