Mersinger emphasized that the crypto industry should cooperate more with the new US administration. Advocating the creation of a “standard approach” in regulating crypto assets, Mersinger expressed his belief that this step will provide a more transparent and sustainable growth environment for the sector.

Under the incumbent administration of U.S. President Joe Biden, the CFTC, along with the Securities and Exchange Commission (SEC), has pursued a “regulation through enforcement” strategy. This strategy has led to significant litigation, especially in the crypto world.

Finally, the lawsuit against Uniswap Labs became one of the examples of the CFTC’s legal moves regarding crypto assets. In its lawsuit against Uniswap, the CFTC questioned the company’s decentralized structure and legal uncertainties regarding its place in the crypto ecosystem.

This case also highlighted the need for a clearer legal framework for regulating crypto assets.

In his speech at the North American Blockchain Summit, Mersinger argued that crypto-related regulations should be made through the “notice and comment regulation” method. This approach could enable the crypto industry to operate under clearer rules.

“Crypto companies often have to operate within existing laws in new and emerging areas such as DeFi. However, this increases uncertainty in the sector and raises questions about how crypto assets should be handled correctly,” Mersinger said.

He pointed out that legal regulations, especially regarding decentralized autonomous organizations (DAOs) and other new generation crypto assets, are unclear. He noted that in the CFTC’s cases regarding crypto assets, court decisions and existing laws often fall short.

Taking the example of Uniswap, he emphasized that the CFTC’s regulatory moves towards the industry often carry the risk of penalizing well-intentioned companies in the industry. Uniswap settled with the CFTC, agreeing to pay a “very small fine.”

However, Mersinger argued that despite this, the CFTC plays an important regulatory role in the crypto spot market. Stating that the CFTC can quickly make changes to the law without affecting the market, Mersinger stated that such regulations will provide a more predictable environment for market players.

Mersinger also made an important suggestion regarding regulations in the sector: He said that the crypto industry should cooperate with the new US administration and take rapid steps on this issue.

He stated that he thinks that especially the early meetings with the new management can provide significant benefits to the sector. “When the new administration comes to power, don’t be afraid to knock on doors,” he said, emphasizing the importance of crypto firms communicating with regulators early.

CFTC Commissioner Summer Mersinger argued that the crypto industry should enter into a more structured regulatory process, stating that the regulations would eliminate uncertainties in the sector and increase confidence in the sector.

The growth of crypto assets in a more regulated manner will increase interest in the sector and create a more transparent market environment for investors.