Will Crypto Values Survive the Regulatory Wave?
The cryptocurrency industry is at a crossroads as regulatory bodies begin to implement new laws and guidelines. Ahead of the People’s Regulatory Roundtable at Consensus 2025, six leading crypto lawyers shared their insights on whether core crypto principles will be preserved in upcoming legislation.
Core Crypto Values Under Scrutiny
The panelists emphasized the importance of decentralization, privacy, and individual freedom in the crypto space. Kayvan Sadeghi highlighted that these values are crucial for achieving sovereignty and preventing centralized control. Connor Spelliscy noted that blockchain technology can provide users with transparency, reliability, and security if policy frameworks incentivize decentralization.
Lewis Cohen focused on the values of the users and builders in the crypto community, who are driven by innovation and the desire to create a more connected and inclusive world. Michelle Ann Gitlitz stressed that decentralization enables true digital ownership and freedom to transact, while David Adlerstein emphasized the importance of free markets, recognized rights in alienable property, and freedom of contract.
Ensuring Core Values in Regulatory Reform
The lawyers proposed various ways to ensure that core crypto values are respected in regulatory reform. Kayvan suggested reframing the conversation to focus on how new technology can achieve existing legal objectives better. Connor recommended implementing control principles to define decentralization under law, which could justify lower regulatory burdens or exemptions under securities laws.
Lewis emphasized the need for regulators to understand the underlying infrastructure of blockchain-based systems to craft appropriate rules. Michelle advocated for legal and regulatory safeguards that are reasonably tailored to the intricacies of these systems. David proposed a balanced approach that preserves openness to new business models while implementing reasonable safeguards to prevent financial crises and illicit activities.
Regulation and Innovation
The panelists also discussed whether regulation could open the door to new and valuable business models. Kayvan believed that sensible regulation could empower individuals by providing more direct access to capital allocation and enabling a broader mainstream audience to participate in the ecosystem. Connor was optimistic about seeing more impactful projects launch in areas like decentralized AI, digital identity, and social media once legal clarity is achieved.
Lewis compared regulation to the development of road infrastructure for automobiles, facilitating innovation in a balanced and sustainable manner. Michelle noted that thoughtful regulation enables wider adoption of innovative crypto products with greater confidence and creates opportunities for RegTech solutions to build compliance tooling and processes.
David highlighted the potential impact of stablecoins and tokenization of real-world assets, emphasizing the need to get stablecoin regulation right to minimize run risk and promote interoperability. The consensus among the panelists was that regulation, when done correctly, can foster innovation while protecting consumers and maintaining the core values of the crypto industry.
The People’s Regulatory Roundtable at Consensus 2025 will feature a discussion with Kayvan Sadeghi, Connor Spelliscy, Lewis Cohen, Michelle Ann Gitlitz, and David Adlerstein, moderated by Ivo Entchev. The event aims to explore the intersection of crypto values and regulatory reform.
