Regulation
Patrick Daugherty on Cryptocurrency Regulation Shifts After Election
Patrick Daugherty, a partner at Foley & Lardner LLP, weighed in on the prospects for a change in the U.S. regulatory approach to cryptocurrency in the Cryptonews article, “Patrick Daugherty Sees Positive Shifts in Cryptocurrency Regulation After Election.”
Daugherty, who leads Foley’s digital assets, Web3 and NFTs practice within the firm’s innovative technologies sector and recently joined The steering committee of the Global Digital Asset and Cryptocurrency Association has criticized the U.S. Securities Exchange Commission’s current approach to cryptocurrencies, stressing the need for clear rules and regulations instead of relying primarily on enforcement actions.
“You can’t always prosecute people without first telling them what the law is,” he said.
Daugherty highlighted the challenges industry players face under the current regulatory regime, stressing the importance of taking a balanced approach that promotes both regulation and innovation. “Most people in the bar think the cryptocurrency industry is targeted for this,” he said. “We don’t see this happening in other industries. Not just now, but ever.”
“I think it’s better for an agency to use its power to make rules and regulations thoughtfully, with notices, hearings, comment letters, interpretations and all those usual rudiments of lawmaking rather than investigations and lawsuits as the primary mechanism,” Daugherty added, noting that he sees 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.”