Consensys Issues Open Letter Urging Pro-Web3 Regulation to Future U.S. President

Consensys Issues Open Letter Urging Pro-Web3 Regulation to Future U.S. President

Blockchain infrastructure provider Consensys has publicly appealed to the next President of the United States to establish a regulatory framework that nurtures and supports blockchain innovation. As the 2024 presidential election approaches, Consensys, known for its Ethereum-focused initiatives and ownership of prominent tools such as MetaMask and Infura, has emphasized the urgent need for regulatory clarity in the rapidly evolving crypto landscape.

In an open letter released on October 24, Consensys expressed concerns regarding the current fragmented approach to cryptocurrency regulation within the United States. The company argues that this disjointed framework creates an environment conducive to the proliferation of bad actors. “The industry’s commitment to advancing progress accountability and equitable access should be protected and nurtured by its governing bodies,” the letter stated, highlighting the importance of supportive regulatory measures for the sector's development.

Core Imperatives for Regulation

The letter outlined three fundamental imperatives that Consensys believes the incoming administration should prioritize. These include ensuring regulatory transparency, enhancing consumer protection, and fostering technological advancement within the blockchain ecosystem. The company pointed out that the existing regulatory ambiguity has resulted in “disingenuous enforcement actions,” underscoring the necessity for a collaborative effort between Congress and regulatory agencies to establish clear guidelines that facilitate legitimate participation in the web3 ecosystem.

“Contrary to the mistaken belief that this technology is unimportant or ephemeral blockchain and cryptocurrency have been embraced across the United States and the world,” the letter emphasized. It further warned that the absence of a coherent regulatory framework coupled with inconsistent enforcement actions against compliant organizations allows for bad actors to thrive, potentially undermining the integrity of the industry.

A Call for Collaboration and Progress

In closing, Consensys urged the future President to adopt these key imperatives, promoting a more optimistic future for blockchain technologies and all individuals whose livelihoods depend on them. The company’s call for action reflects a broader sentiment within the blockchain community, as other organizations also seek greater regulatory clarity. Earlier in October, the firm 21Shares appealed to the European Securities and Markets Authority for similar clarity to benefit both retail and institutional crypto investors across Europe.

The Zurich-based company highlighted the discrepancies in regulations among different countries, noting that while nations like Germany and Malta allow UCITS funds to invest in cryptocurrency, others such as Luxembourg and Ireland do not. This lack of consistency results in a fragmented approach that complicates the investment landscape, making it challenging for investors to understand and compare their options effectively.

Conclusion

As the crypto industry continues to evolve, the push for a clear and supportive regulatory framework becomes increasingly vital. Consensys' open letter to the future U.S. president is a timely reminder of the need for proactive measures that foster innovation and protect users within the blockchain space.