As the regulatory landscape continues to be fragile for crypto players, some regulators may go too far when it comes to creating frameworks for the industry, said Chris Lehane, chief strategy officer of Haun Ventures , during TechCrunch Disrupt 2023.
“The government had a strategy,” Lehane said. But when the SEC looks at crypto or other hot sectors like artificial intelligence, it uses an “enforcement-only approach to essentially set policy for the entire United States and the rest of the world.” cryptography,” he said.
In recent months, the SEC has filed a number of lawsuits against major crypto companies, including Binance and Coinbase, and even against celebrities like Mila Kunis. But last month, the D.C. Circuit Court of Appeals ruled in favor of Grayscale, a digital asset management company, in a lawsuit against the SEC over a bitcoin ETF, which could be good news for the industry.
“The SEC has lost a number of cases — that almost never happens — which kind of shows you how on its skis they are,” Lehane said. “But this carries a significant risk that (the government) will not approach this issue strategically.”