Foley & Lardner LLP partner Patrick Daugherty offered insight on the prospects of a shift in U.S. regulatory approach to cryptocurrency in the Cryptonews article, “Patrick Daugherty Sees Positive Shift in Crypto Regulation Post-Elections.”
Daugherty, who leads Foley’s Digital Assets, Web3 & NFT Practice within the firm’s Innovative Technology Sector and recently joined the Global Digital Asset and Cryptocurrency Association Steering Committee, criticized the U.S. Securities Exchange Commission’s current crypto strategy, emphasizing the need for clear rules and regulations instead of relying predominantly on enforcement actions.
“You can’t just always sue people without telling them what the law is first,” he commented.
Daugherty highlighted the challenges faced by industry participants under the current regulatory regime, noting the importance of having a balanced approach that supports both regulation and innovation. “Most people in the bar think that the crypto industry is being singled out for this,” he said. “We do not see this happening in other industries. Not just now, but really ever.”
“I think it is best for an agency to use its power to make rules and regulations in a thoughtful manner with notice and hearings and comment letters and interpretations and all these usual rudiments of lawmaking rather than investigations and lawsuits as a primary mechanism,” Daugherty added, emphasizing he foresees potential positive changes in the regulatory environment following the 2024 U.S. elections.
