Attorney denies claims of regulatory capture in the crypto industry
In an interview with Cointelegraph, Brandon Ferrick, general counsel at Douro Labs, stated that the Securities and Exchange Commission (SEC) showing openness to public input on crypto policy and hosting roundtable discussions are positive indications that the crypto industry is not currently facing regulatory capture.
Ferrick pointed out signs of regulatory capture such as a revolving door of employees between the public and private sector, the same attendees at regulatory events, and preferential treatment given to specific crypto projects. Despite this, Ferrick emphasized:
“The reason why I am not concerned today is that much of what we see from the regulatory side, like the SEC, is completely transparent, public, and there are opportunities to engage in conversations with regulators about potential changes to regulatory structures.”
“[The SEC] provides a public portal where individuals can submit written commentary regarding their thoughts on the crypto regulatory environment, as well as schedule meetings with them,” Ferrick added.
Executives and panelists from the crypto industry discussing cohesive crypto regulation at the SEC’s inaugural crypto roundtable in March 2025. Source: SEC
As the crypto industry increasingly collaborates with the traditional financial system and engages state regulators, some analysts and executives are concerned about potential regulatory capture that could distort incentives and politicize the growing crypto sector.
Related: SEC staff provides guidance on how securities laws could apply to crypto
SEC conducts multiple roundtable discussions on crypto policy
The SEC has organized several roundtable discussions and panels on crypto, with more planned in the upcoming months — a departure from the agency’s enforcement-oriented approach under former SEC chairman Gary Gensler.
On March 21, the SEC hosted its first crypto roundtable, which featured industry executives, SEC officials, and critics of the crypto industry.
Former SEC official John Reed Stark was critical of the industry and opposed comprehensive regulatory reform, advocating for digital assets to comply with existing securities laws.
Former SEC official John Reed Stark addresses the SEC’s March 2025 crypto roundtable. Source: SEC
The SEC’s roundtable on April 11 focused on trading rules and featured panelists from Uniswap and Coinbase.
The next SEC panel is scheduled for April 25 and will concentrate on establishing guidelines for crypto custodians and other firms that hold crypto on behalf of clients.
Magazine: SEC’s change in stance on crypto raises unanswered questions
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