The recent shift towards a pro-crypto position in Washington has generated a wave of optimism throughout the digital asset sector.
In a recent roundtable discussion, anchor Rob Nelson engaged with Johann Kerbrat, Head of Crypto at Robinhood, to explore the potential impact of an incoming administration that favors cryptocurrency. They examined how such leadership could transform the regulatory landscape for the industry.
Kerbrat emphasized the difficulties faced over the past four years, pointing out that “regulation by enforcement” has consistently hindered the industry. He conveyed optimism that the new administration’s supportive stance on cryptocurrency indicates a potential move toward cooperative regulation.
“I believe that rather than pushing crypto companies out of the U.S., we will witness a resurgence of individuals returning from abroad to establish their ventures within the country,” he stated.
Nelson underscored the importance of establishing clear guidelines, aligning with Kerbrat’s assertion that the absence of a defined framework has had negative consequences. “Clarify the framework for us, rather than making decisions post hoc,” Nelson emphasized, highlighting the importance of proactive regulation over reactive measures.
Kerbrat emphasized the critical role of customer protection within any regulatory framework. He highlighted previous cryptocurrency scandals such as Mt. Gox and FTX, contending that more defined regulations might have alleviated these crises. “Establishing a framework that prohibits the custody of assets without the involvement of multiple individuals for any fund movement, or that disallows the commingling of funds between firm and customer assets, would be crucial,” he elaborated.
Kerbrat highlighted Robinhood’s approach to regulatory challenges: “We’re not against regulators or regulations.” Robinhood operates under the oversight of various regulatory bodies. He highlighted the critical role of an established framework in promoting innovation while maintaining compliance.
With the new administration on the horizon, both speakers express a shared belief that effective regulation has the potential to bring about significant change in the industry. “We are fully prepared to collaborate with regulators and the administration to draft any legislation that could advance the industry,” Kerbrat stated, expressing a hopeful outlook for a new phase of cryptocurrency regulation in the United States.