Crypto Industry Not Facing Regulatory Capture, Says Attorney

Crypto Industry Not Facing Regulatory Capture, Says Attorney

As concerns grow over regulatory capture in the crypto sector, some legal experts remain optimistic about the current state of oversight. Brandon Ferrick, general counsel at Douro Labs, believes that the crypto industry is not experiencing regulatory capture, thanks in large part to the transparent and participatory approach being taken by regulators like the U.S. Securities and Exchange Commission (SEC).

In a recent interview with Cointelegraph, Ferrick outlined the traditional indicators of regulatory capture—such as the revolving door between public and private sectors, repeated appearances by the same industry figures at regulatory events, and favoritism toward select crypto projects. However, he emphasized that none of these red flags dominate the current landscape.

“The reason why I am not worried today is that a lot of what you're seeing from the regulatory side, like the SEC, for example, is totally open, public, and there are available opportunities to have conversations with the regulators about changing or thinking about the regulatory structures,” said Ferrick.

Crypto Industry executives and panelists discuss cohesive crypto regulation at the SEC’s first crypto roundtable in March 2025. Source: SEC

He pointed to the SEC’s public comment portal and the ability to schedule meetings with agency officials as signs of genuine openness. These mechanisms, according to Ferrick, allow stakeholders across the crypto spectrum to engage in meaningful dialogue and influence policy decisions.

SEC Embracing Public Engagement Through Roundtables

One of the most notable shifts in the SEC’s approach is its move toward hosting public roundtables focused on crypto policy—marking a departure from the previous era of enforcement-heavy regulation under former Chairman Gary Gensler.

The first such roundtable took place on March 21, featuring a diverse mix of participants including crypto industry leaders, SEC officials, and critics of the industry. Among the latter was former SEC official John Reed Stark, who argued against comprehensive reform and advocated for the application of existing securities laws to digital assets.

A second roundtable on April 11 centered on trading rules and welcomed new voices, including representatives from Uniswap and Coinbase. These discussions not only promote transparency but also allow a broader array of perspectives to be considered in shaping future regulations.

Former SEC official John Reed Stark addresses the SEC’s March 2025 crypto roundtable. Source: SEC

The next roundtable is scheduled for April 25 and will focus on setting guidelines for crypto custodians and other firms that hold digital assets on behalf of customers.

A Balanced Path Forward

As crypto becomes increasingly integrated with traditional financial systems, worries about regulatory capture and politicization persist. However, Ferrick’s comments—and the SEC’s recent efforts—suggest a regulatory environment that values public input and collaboration over backroom dealings.

With continued public engagement and diverse stakeholder participation, the regulatory path forward for crypto may be more balanced and resilient than some critics fear.