A new poll by HarrisX Public Policy Research Team and the Blockchain Association has unveiled how voters in the United States view the U.S. Securities and Exchange Commission’s (SEC) regulatory approach toward the cryptocurrency industry, and the results are critical in the lead-up to the elections.
HarrisX conducted the poll from Oct. 25-28 among 1,717 registered voters in the country, and among the most damning results is that more Americans believe financial regulators should focus on clear guidelines over enforcement.
More Voters Demand Increased Digital Asset Education
Even as cryptocurrency has been in the financial realm for more than a decade, mass knowledge about blockchain technology and digital assets remains an issue.
The poll revealed that there is “strong demand for increased transparency and education regarding digital assets.” In fact, 81% of the respondents are advocating for the government to provide more resources for education on the risks and benefits of digital assets.
Two-Thirds of American Voters Want Congress Guidance Before SEC Action
At a time when the crypto industry continues to be haunted by lawsuits and Wells notices from the SEC led by Chair Gary Gensler, the poll revealed that “two-thirds of voters,” or 66% of the respondents, agree that the regulatory agency “should wait until Congress provides clearer guidelines” before it implements enforcement actions.
Furthermore, majority of registered voters (61%) believe that “SEC actions are inconsistently applied.”
Congress has yet to pass a crypto-focused bill. There has been progress with some proposed legislation to provide the sector with a regulatory framework, but it is unclear whether crypto-centric bills will pass this year.
The results on the said topic are not without merit. Crypto users and even lawmakers have criticized Gensler for his “destructive” crusade against firms in the vast blockchain and crypto sector. The Gensler SEC has repeatedly been criticized for its “regulatory overreach.”
Democratic Rep. Ritchie Torres recently highlighted Gensler’s inconsistent explanations on cryptocurrencies being securities. If anything, the SEC chief appears to be consistent in refusing to provide answers to lawmakers’ direct questions under oath.
On the other hand, most voters still agree that SEC enforcement is necessary for investor protection, with majority agreeing that enforcement actions are effective in regulating a fraud-vulnerable industry.
An Increasing Number of Voters Believe SEC Actions Affect Talent
Another incriminating revelation from the survey is the fact that an increasing number of people – not just the crypto community, but registered U.S. voters – believe the SEC’s enforcement actions have played a role in blockchain developers moving out of the country.
A total of 54% of the respondents believe the SEC’s crypto war is “contributing to the decline in blockchain development and innovation within the U.S,” compared to 46% who believe the decline is driven by a broader shift among developers toward other markets.
In a recent Congress hearing, a former SEC official pointed to the regulator’s missed opportunity in helping the U.S. maintain its tech edge in the crypto sector due to its “whack-a-mole enforcement” approach. The former official said its ex-employer made the country a “crypto no fly zone.”
Voters More Likely to Support Digital Asset Innovation Advocates
Finally, the HarrisX poll found that there is an opportunity for pro-crypto candidates to win over American voters over the issue on SEC regulation and enforcement.
“On net, voters are +17 points more likely to support a candidate who promotes innovation in digital assets (29% more likely vs 12% less likely). Similarly, voters are on net +15 points more likely to say they will vote for a candidate who supports digital asset development (30% more likely vs 15% less likely),” as per the survey results.
Crypto voters, who make up for 18% of the total American voting electorate, “are even more winnable,” it was found, since they are +61 points on net to support a pro-innovation candidate.
The Cost of Gensler SEC’s War on Crypto
The Blockchain Association said there have been 104 enforcement actions brought against the digital asset sector under Gensler through 2023. It added that crypto member firms faced with lawsuits and enforcement actions from the SEC have spent some $426 million “in defensive litigation.”
Among the most high-profile lawsuits that the Wall Street regulator initiated in the industry is its case against Ripple, the world’s largest holder of the XRP token, its complaint against crypto exchange giant Coinbase, and Wells notices against fintech titan Robinhood’s crypto arm and NFT marketplace OpenSea, among others.
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