As the debate around cryptocurrency regulation heats up in the United States, concerns about regulatory capture—where government agencies act in the interest of the industries they regulate rather than the public—continue to emerge. However, Brandon Ferrick, general counsel at blockchain infrastructure firm Douro Labs, believes that the crypto industry is not currently under such a threat.

In a recent interview, Ferrick emphasized that the U.S. Securities and Exchange Commission (SEC) has shown openness to dialogue and transparency, which are key indicators of a healthy regulatory process. He acknowledged the signs that often hint at regulatory capture—such as the revolving door between public agencies and private firms, repetitive insider panels, or unfair advantages granted to select projects. Yet, he said those signs are not clearly present in how regulators are currently approaching digital assets.

Ferrick pointed to the SEC’s willingness to invite public participation in crypto-related policy as a positive sign. According to him, the Commission’s public-facing portal allows anyone—industry stakeholders, independent developers, or even individual investors—to submit written commentary on crypto regulations. The agency also offers meeting opportunities, providing platforms for open conversations on proposed rules or frameworks. These are not typically features of an environment where regulatory capture thrives.

His comments arrive at a time when the SEC is attempting to shift away from its historically rigid approach to digital assets. Under former Chair Gary Gensler, the SEC was widely criticized for its aggressive “regulation by enforcement” stance. That approach led to lawsuits and enforcement actions against a number of crypto firms, often without clear guidance from the Commission beforehand.

In recent months, however, the agency has taken a more collaborative direction, marked by a series of public roundtables on crypto policy. The first such event took place on March 21, featuring diverse participants including industry executives, government officials, and vocal crypto critics like former SEC enforcement chief John Reed Stark. Stark reiterated his stance that cryptocurrencies should not receive special regulatory treatment and must conform to existing securities laws.

The SEC followed that session with another roundtable on April 11, this time focused on trading rules for digital assets. Representatives from well-known crypto platforms like Coinbase and Uniswap took part in the discussion, adding to the diversity of viewpoints represented. The next roundtable, scheduled for April 25, will focus on crypto custody rules—an increasingly important topic as more institutions enter the market and consumer protection takes center stage.

Still, concerns persist in some corners of the crypto community. As the industry becomes more entangled with traditional finance, some fear regulators may craft rules that disproportionately benefit large corporations at the expense of smaller innovators. Ferrick acknowledges these concerns but maintains that the openness currently seen in U.S. regulatory forums provides the industry with tools to shape its own future.

Encouraging broader engagement, Ferrick noted that it is essential for all participants—startups, technologists, investors, and even concerned citizens—to make use of public comment portals and attend open hearings. In doing so, they help ensure that the crypto ecosystem continues to grow under fair, transparent, and balanced regulation.