Jake Chervinsky, a prominent lawyer in the crypto space, predicts an increase in regulatory scrutiny of crypto companies in the coming months. He cites the end of the fiscal year on September 30th as a key driver, pushing regulators like the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to bolster their enforcement records in preparation for budget requests.
Chervinsky also highlights the upcoming US presidential election as a significant factor influencing crypto regulation. He points to the growing political interest in crypto, with candidates like Republican nominee Donald Trump openly expressing support for the market. Even Democratic nominee Kamala Harris has softened her stance on crypto, accepting campaign donations in cryptocurrency through Coinbase, suggesting a potential shift towards a more favorable regulatory environment.
Chervinsky notes a rising trend of regulators settling with crypto companies through consent orders, avoiding lengthy legal battles. This approach could lead to the resolution of numerous smaller-scale cases. A recent example is Uniswap Labs' $175,000 fine to the CFTC for alleged violations of crypto derivatives trading rules. Chervinsky believes regulators may portray these settlements as victories, bolstering their enforcement narratives.
Previously, Chervinsky criticized the SEC for its numerous threats of legal action against crypto services, claiming that the regulator prefers to intimidate established companies, exceeding its legal authority and congressional mandate.