“‘[D]ecentralized’ is also an apt description of the regulatory landscape for crypto. Crypto has many actual and aspirational regulators. Regulatory decentralization can have benefits, but, if not properly managed, also can aggravate the already confusing lack of regulatory clarity over crypto. Cooperation among regulators is essential to strong, effective, pragmatic crypto regulation.”

“Crypto gives us a new opportunity to cooperate and do so publicly. As an initial step, we are calling on our agencies to hold a joint set of public roundtables to evaluate recent market events and risks, and to discuss how to regulate crypto responsibly. These roundtables would be open to the public, and panelists would include crypto users, investor and customer advocates, industry members, and other regulators. The goal would be to assess whether new regulations are necessary to protect the public and the markets, how existing regulations might be modernized to better account for innovation, and how technology is likely to reshape our markets. We could start with topics such as digital asset trading platforms, crypto derivatives, stablecoins, decentralized finance, and the balance between privacy and anti-money laundering measures.”

“If we act now, it could lead our two agencies to work better together. Doing so would benefit the capital markets, not just the crypto markets.”

Read the full op-ed here.