Regulatory Capture Not Occurring in Crypto Space, Says Legal Expert
Douro Labs general counsel and lawyer Brandon Ferrick doesn’t believe the crypto space is undergoing regulatory capture yet. Ferrick pointed to the Securities and Exchange Commission’s (SEC) ongoing transparency and openness to taking input from industry participants as strong signals of a healthy regulatory process.
Transparency and Engagement from the SEC
Ferrick noted that the willingness of the SEC to conduct public panel discussions and provide opportunities for public comment is a significant indicator of fair regulatory engagement.
“The reason I’m not worried today,” Ferrick said, “is that a lot of what you’re seeing on the regulatory side, like the SEC, is totally open, public, and there are opportunities available to have discussion with the regulators.
He pointed out that the SEC has an open portal where people can provide input on crypto rules or book meetings to air concerns in person.
Roundtables Indicate Move Away from Enforcement-First Strategy
The SEC has conducted several crypto-themed roundtable events in 2025, indicating a move away from the regulation-by-enforcement strategy of former chairman Gary Gensler.
On March 21, the agency held its first crypto roundtable, which hosted crypto executives, SEC staff, and critics such as former SEC official John Reed Stark, who argued against regulatory reform.
A second panel on April 11 addressed trading rules and featured speakers from Uniswap and Coinbase. The April 25 session will discuss crypto custody rules, pointing to the SEC’s continued commitment to structured conversation.
Industry Still Wary of Regulatory Capture
Despite such progress, some analysts and business leaders are uneasy, warning that additional integration with traditional finance could lead to regulatory capture. Cause for concern are favorable treatment of particular ventures and a revolving door between administrative bodies and private firms.
Ferrick is unfazed: “There’s no hint of capture today—just more structure and more openness.”
