Crypto laws are likely to be created by courts says the Chief-Legal Officer at Kraken exchange Marco Santori. Santori who recently joined the crypto exchange believes that creating laws for the digital money market will be handled by the courts in the next one to two years.
The CLO goes on to say that cryptocurrency firms are taking seriously the legal game in the past year. According to the legal expert, there are two aspects that need to be done soon to improve existing crypto laws :
The common law, in particular, developing around the regulatory white spaces that have been left over the years. Secondly; it will probably be the courts and not Congress to come up with new laws for the industry over the next year or two.
Current regulators controlling crypto laws
Santori goes on to add that the current crop of regulators will continue having a say on the new laws by giving guidance. However, handling of the current cases is relatively slow and Congress has not been able to speed up the process. This will see judges take leadership in the coming years.
Bringing Santori onboard Kraken is a good signal that it no longer business as usual. The CLO and the ‘Dean of Digital Currency Lawyers’ has worked for Blockchain.com, a crypto wallet service provider as the President and Chief Legal Officer.
Preparing for new crypto laws?
Due to the decentralized nature of digital assets, regulation can have a great impact on the digital money markets especially when it comes to transacting and valuation says the U.S. Federal Reserve Bank of Dallas. There is a need for a global scope to have effective regulations.
The crypto industry can offer valuable options to the traditional banking systems that have been highlighted by the current coronavirus crisis. However, the current crypto pump and dump make the function of regulators important. With the dynamic nature of the market, what works today might become obsolete tomorrow.