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Synthetix Creator Accuses US Regulators of Lacking in Good Faith When It Comes to Crypto

Published September 28, 2023 12:16 PM
Teuta Franjkovic
Published September 28, 2023 12:16 PM

Key Takeaways

  • The founder of Synthetix, Kain Warwick, said US officials are dishonest when it comes to regulating the crypto industry.
  • He expresses surprise at what he sees as “adversarial attacks” by politicians and regulators.
  • Warwick sees crypto as having turned into a partisan issue in the US, with regulators launching a “clear attack” against it.
  • Warwick asserts that the crypto community is well-prepared for such battles and is determined not to lose.

Kain Warwick, the founder of Synthetix (SNX), believes it is now evident that US financial officials are acting dishonestly when it comes to policing the cryptocurrency industry.

Warwick Criticism

In a recent interview with Bankless, Warwick expressed surprise at the extent of “adversarial attacks” on cryptocurrencies by politicians in Congress as well as regulators like the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

“Maybe this is a bit naive, but I wanted to believe that the regulators were genuinely operating in good faith. And I actually think we’ve crossed the line where they’re no longer operating in good faith. It’s actually a pitched battle and they’re just trying to win.”

In the US, crypto has unfortunately turned into a partisan issue, according to Warwick. He contends that regulators are currently carrying out a “clear attack” against the industry and what it is trying to create.

“That said, if there’s one industry that you don’t want to become adversarial with, it’s crypto. We’ve been doing this for much longer than you guys and we will absolutely not lose that battle, right?”

The founder of Synthetix claims that he is “unequivocal” in his belief that cryptography is the kind of cutting-edge technology that will improve society.

Battles Over Crypto Regulation To Be Resolved by US Courts

Recently, Warvick said  that avoiding regulatory risk in the US for initiatives involving decentralized finance (DeFi) is practically impossible.

“In my opinion, US regulatory agencies have completely lost sight of their mandate, and it’s now going to be up to the courts to sort this all out.

The stance of regulators in the US is utterly antithetical to their mandate. DeFi is built on a technology that increases market transparency and efficiency, it is not perfect, but it is very new and should be given an opportunity to prove itself in the market.

Certainly, it has more potential than the current system of a bunch of black boxes built on 50-year-old legacy code that is barely kept in line by millions of pages of rules and regulations.”


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