In an op-ed piece published on CNBC, Former White House Director of Communications Anthony Scaramucci, who is the founder and managing partner of global alternative investment firm SkyBridge Capital, explores the ongoing debate surrounding the regulation of the blockchain and cryptocurrency industries.
He believes the “too little, too much, or just right” approach to regulation is overly simplistic and advocates for a more nuanced framework: “stop bad, support good.”
Scaramucci points out that the U.S. Securities and Exchange Commission (SEC), under Gary Gensler’s leadership, has become the most prominent regulator of cryptocurrencies. It has doubled the size of its crypto assets enforcement unit and levied fines on various industry players.
However, this regulation-by-enforcement strategy has faced criticism from both within the SEC and from industry executives. Scaramucci contends that solely focusing on enforcement is not enough to foster progress and prosperity in the industry. Instead, he calls for a more holistic approach at the federal level, with well-crafted government policies that support good actors and promote innovation.
He highlights the importance of public-private partnerships, such as Abu Dhabi’s $2 billion initiative to back blockchain and Web3 startups, and the UNICEF Venture Fund in collaboration with Giga. Additionally, he emphasizes the need to raise awareness about significant grants supporting research and education at the university level, like Ripple’s University Blockchain Research Initiative, the Wyoming Advanced Blockchain Lab at the University of Wyoming, and the Algorand Foundation’s ACE program.
Scaramucci urges government officials to help the public understand the importance of balanced regulation that preserves innovation while combating bad actors in the crypto and blockchain space.