Bloomberg: Weak Regulation Could ‘Break’ Crypto Industry’s Future

On January 20, the Bloomberg Editorial Board noted that while U.S. Congress is trying to build a legal framework for digital assets to boost innovation and curb illegal activity, this effort may not work given weakened regulatory authority and insufficient resources. The piece highlighted two key bills: - The stablecoin regulation bill “Genius Act” would spread core oversight responsibilities across multiple regulators. The lead agency—the Office of the Comptroller of the Currency (OCC)—has faced major setbacks from layoffs and cyberattacks. - The “Clarity Act” could weaken the U.S. Securities and Exchange Commission (SEC) by shifting oversight of most tokens to the Commodity Futures Trading Commission (CFTC). However, the CFTC’s budget is just one-sixth of the SEC’s, and it also lacks manpower and enforcement capacity. Additionally, the Consumer Financial Protection Bureau (CFPB)—once tasked with handling crypto-related consumer complaints—has been effectively dismantled, further eroding the regulatory framework. Bloomberg argues that if broader public and institutional investment in crypto assets continues amid inadequate regulatory capacity, the industry could face a backlash as fraud and criminal issues persist. The editorial calls for a unified trading framework covering all unclassifiable digital assets (like Bitcoin and Ethereum), developed jointly by the SEC and CFTC, to ensure market integrity, investor protection, and transparent disclosure. The commentary concludes with a warning: Until Congress truly empowers regulators with sufficient authority, expertise, and resources, the crypto market will remain a “buyer beware” space.