US regulators are engaged in fierce competition in the Crypto Assets sector

Recently, the two major regulatory agencies in the United States have taken a series of actions against the Crypto Assets industry, leading to disputes over regulatory authority. The globally renowned trading platform Coinbase received a warning notice from the Securities and Exchange Commission (SEC), accusing it of violating securities regulations. At the same time, another leading trading platform and its founder were accused by the Commodity Futures Trading Commission (CFTC) of violating commodity trading regulations.

This situation highlights the complex operating environment faced by American Crypto Assets companies, with an escalating jurisdictional dispute between the SEC and the CFTC. Since the collapse of a well-known trading platform, the two regulatory agencies have adopted a tougher stance towards the Crypto Assets industry, demonstrating their regulatory authority through enforcement actions.

Former senior White House official and current advisor to a compliance platform, Mick Mulvaney, stated: "People are now aware that the regulatory stance is hostile. I believe the collapse of a certain platform is not the cause, but rather an excuse."

Since the beginning of this year, the SEC has initiated a series of lawsuits against cryptocurrency companies and individuals in the United States. This includes accusations against a certain exchange and crypto lender for providing unregistered securities issuance services, reaching a settlement with another exchange over the cessation of a reward service, and issuing warnings to a stablecoin issuing company, among others. The SEC has also accused a certain blockchain founder of market manipulation, as well as several celebrities for illegally promoting related tokens.

Mulvaney believes that the SEC is demonstrating its power through enforcement actions to strengthen its dominance over the industry, but this approach has lost its fairness. Even within the SEC, there are differences on how to handle Crypto Assets issues. SEC Commissioner Hester Peirce has publicly opposed several actions related to Crypto Assets, calling for improved dialogue and better relations between the regulatory body and the Crypto Assets industry.

At the same time, the CFTC's lawsuit against a leading global trading platform specifically mentions popular Crypto Assets such as Bitcoin and Ethereum as commodities. CFTC Chairman Rostin Benham stated that this should be viewed as a warning to the digital asset industry.

In the absence of clear guidance from Congress, Crypto Assets companies have had to do their best to anticipate possible complaints from two regulatory agencies. However, due to the lack of specific guidelines for Crypto Assets, this has become exceptionally difficult. The CEO of a certain Crypto investment company, Dave Siemer, likened this situation to "driving on a road without signs or lanes."

Crypto Assets companies are frustrated with the actions of regulators, hoping to engage in effective communication with the SEC and CFTC to establish clearer and more comprehensive rules. However, some companies have stated that interactions with regulators feel more like a "one-sided monologue" rather than a dialogue.

Industry insiders believe that a better solution is for Congress to enact comprehensive Crypto Assets legislation. While regions like the European Union have made progress in this area, the United States is relatively lagging in legislation. Mulvaney anticipates that it is unlikely that comprehensive Crypto Assets legislation will be passed this year before the 2024 presidential election.

The uncertainty of the regulatory environment may lead Crypto Assets companies to withdraw from the United States. Some companies have already started to establish headquarters in Europe and other locations, or are considering developing offshore trading platforms. Small Crypto Assets companies are also formulating contingency plans, and some have even ceased hiring in the United States.

SEC Commissioner Peirce emphasized that the goal of regulatory agencies should be to facilitate safe technological experimentation, rather than pushing the Crypto Assets industry overseas. She called for parties to "talk like adults" instead of simply asking businesses to "come in and register," as no one truly understands what that means at present.