Regulators’ Reluctance to Regulate Crypto is Intentional: Barclays Exec

After leaving the crypto industry to grow unchecked for years, policymakers and lawmakers are now working on implementing favorable regulations for the industry.

According to Nicole Sandler, the Head of Digital Policy at Barclays, the recent increase in regulatory actions in the crypto industry is unconnected to the realization from policymakers that the nascent industry has come to stay rather than collapse as some policymakers had thought.

Furthermore, while citing an earlier discussion with the European Commission bordering on a legal framework for digital assets, she explained the regulators felt cryptocurrencies were a fad that would fade away with time, hence the reluctance to provide regulations to govern the industry.

Nicole shared this thought during a panel at the Citi Digital Money Symposium in London where crypto regulations in the United States, the United Kingdom, and Europe were discussed. Although regulators are now aware of the importance of suitable regulations for the industry owing to the adoption and the increased traction of the digital asset, Nicole worries that it would take quite some time to fully implement these regulations.

Nicole however noted that the policymakers didn’t avoid the crypto space due to its nascency but instead opted to monitor the progress in the industry.

SEC Increase Regulatory Clampdown

Recall that a few days ago, Gary Gensler, the US Securities and Exchange Commission (SEC) chairman, mentioned that there was no need for additional legislation.

The SEC chair also said his agency is enough to oversee regulations in the crypto industry and as such, special legislation for the digital asset class is pointless. Gary’s comment comes a day after he was summoned to face Congress over crypto policy.

Meanwhile, Coinbase, who had made several attempts to contact the SEC about registration pathways received a “Wells notice” from the regulatory body last month regarding the legality of some digital assets on its platform.

However, there is a need for a clear crypto regulatory framework to avoid negative impacts. Some of the negative impacts amongst others include confusion and uncertainty in businesses, investors, and consumers leading to market inefficiencies and reduced economic growth.