Three US presidential candidates have vowed to reboot the struggling crypto-asset (virtual currency) ecosystem, raising the possibility that industry lobbying efforts will bear fruit in the coming elections.

Two Republicans, entrepreneur Vivek Ramaswamy and former Arkansas Gov. Asa Hutchinson, and Democratic U.S. Rep. Dean Phillips have signed up for Coinbase. (Coinbase)-backed Stand with Crypto Alliance pledged to ease regulatory pressure on crypto companies at an event hosted by the Stand with Crypto Alliance.

Aiming for a comprehensive regulatory framework

Although their approaches varied in tone and scope, there were common themes. Creating a clear and cohesive regulatory framework for digital assets.

“Whether it’s a commodity or a security, companies have a right to know rather than playing regulatory musical chairs,” Ramaswamy said, calling over-regulation of the crypto industry a “cancer.” I mentioned it later.

Each candidate gave a speech on crypto asset policymaking and answered questions from CoinDesk Regulation and Policy Editor Jesse Hamilton. Their comments centered around creating a unified regulatory framework, from curbing the power of federal regulators to educating policymakers about crypto assets to protecting developers from criminal prosecution.

The convergence of these proposals was in contrast to the political dissonance that has hampered recent efforts in Congress to create regulations for the industry.

Blame on SEC and big banks

Many of his comments were constructive, but at times they amounted to self-promotion. All three criticized the U.S. Securities and Exchange Commission (SEC) for its crackdown on crypto exchanges, including Coinbase, Kraken, and Binance, and called for the commission’s powers to be curtailed. .

“We want to see an SEC that doesn’t treat everyone it regulates as an adversary,” Hutchinson said, calling for an end to the regulator’s “guidance by enforcement” strategy.

Mr. Ramaswamy vowed to reduce the SEC’s headcount as part of his goal to eliminate 75% of bureaucratic work. “He will be outraged in the afterlife” after seeing the SEC’s actions regarding cryptoassets, a technology invented in the 1970s.

None of the three are leading in polls for their party’s primaries and likely won’t be free to use presidential power to promote crypto assets.

The candidates then discussed how blockchain technology can disrupt traditional finance (TradFi) and lay the foundation for a fairer and more trustworthy financial system.

“The crypto market has more transparency than banks or traditional finance,” Hutchinson said.

Cryptocurrencies can “cut out a lot of middlemen who are taking away people’s money bit by bit at a time when they are already struggling to make ends meet,” Phillips said.

Some lack specificity

Although the three presidential candidates appeared to be aware of the many challenges unique to the crypto industry, they avoided discussing the finer points of the crypto regulation debate, at times using well-worn industry lines. “Crypto assets need clarity” was repeated in some cases.

｜Translation and editing: Akiko Yamaguchi, Takayuki Masuda
｜Image: US presidential candidate Vivek Ramaswamy (right)
｜Original text: US Presidential Candidates Chat About Crypto, Target Federal Regulators