Crypto industry shows no signs of regulatory capture

Brandon Ferrick, general counsel at Douro Labs, stated that the crypto industry is not currently experiencing regulatory capture, highlighting the Securities and Exchange Commission’s (SEC) openness to public input and transparent regulatory processes.

Ferrick explained that typical indicators of regulatory capture include a revolving door between public agencies and private firms, repetitive attendance by the same stakeholders at regulatory events, and special treatment for certain projects. 

However, he noted these signs are absent in the current regulatory environment.

“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,” Ferrick said.

He pointed to the SEC’s public portal that allows anyone to submit written commentary on crypto regulations and schedule meetings with regulators, emphasising this level of engagement as a positive sign.

The SEC has shifted from a strict enforcement approach under former chairman Gary Gensler to a more collaborative stance, hosting several roundtable discussions since March 2025. 

These panels have included a broad range of participants, from crypto industry executives to critics like former SEC official John Reed Stark, who advocates for applying existing securities laws to digital assets.

Recent roundtables have addressed trading rules and upcoming discussions are set to focus on guidelines for crypto custodians and firms holding crypto on behalf of customers.

While some analysts express concern that closer ties between crypto and traditional finance could lead to regulatory capture favoring large corporations, Ferrick believes the current transparency and public participation opportunities help prevent this.