Amid rising political and market tensions, blockchain firm Consensys has issued an open letter to the future United States president requesting clear and supportive regulations for cryptocurrencies and Web3.
The letter, published Oct. 23, cites the need for transparency in regulatory ruling that would allow the US to remain competitive globally while addressing consumer protection and illicit activity concerns.
Consensys’ plea comes as the cryptocurrency market experiences significant volatility in response to global events. Bitcoin (BTC) is currently valued at around $67,500, down from its peak of more than $70,000 in June.
Chart depicting BTC price fluctuations over the last 12 months. Source: CoinMarketCap
Plea for regulatory clarity
Consensys argues that regulatory uncertainty in the US is hindering blockchain technology development. The firm pointed out the lack of a comprehensive framework, despite the global adoption of decentralized platforms.
According to Consensys, this gap in regulatory guidance leaves room for inconsistent enforcement actions and the discouragement of innovation for businesses and developers.
The plea for regulatory clarity arrives after the blockchain firm’s lawsuit against the US Securities and Exchange Commission was thrown out of court by a Texas federal judge on Sept. 19.
Crypto and politics
Bitcoin’s price volatility has coincided with growing political activity in the cryptocurrency sector. Ripple co-founder Chris Larsen recently donated $10 million worth of XRP to Vice President Kamala Harris’ presidential campaign.
Larsen confirmed the contribution to a political action committee (PAC) that supports Democratic Vice President Kamala Harris on Oct. 21 in an X post.
In an Oct. 22 post, Bitwise’s head of alpha strategies, Jeff Park, predicted a rally to $92,000 for BTC if former US President Donald Trump wins the US presidency in November.
US leadership implications for crypto
With the 2024 US presidential election just weeks away, crypto policy has become a focal discussion point throughout social media.
Trump, who was once critical of Bitcoin, has since adopted a pro-crypto stance. He has promised to fire SEC Chair Gary Gensler and position the US as a global leader in cryptocurrency if he wins the election.
Despite the promises of the former president, Consensys’ warning of a lack of supportive regulatory oversight could still put the US at risk of falling behind other nations that have already embraced blockchain tech.
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