#CFTCCryptoSprint An ideal approach would be one of "principle-based regulation", which establishes clear guidelines instead of rigid and detailed rules. This would give innovators the freedom to create solutions that meet regulatory objectives (investor protection, market integrity) without stifling technology.

If regulators approach the sector with a "shaping" rather than a "punishing" mindset, there is a real chance that innovation can thrive under a mantle of greater trust and security. However, if the focus is on applying traditional rules inflexibly, we risk seeing innovation move to other jurisdictions or into the "shadows", out of reach of regulation and its protective purpose. The success of the "Crypto Sprint" will depend on its ability to find this balance.