Gary Gensler’s Former SEC Colleague Says Restrictive Crypto Regulations Amount to ‘Knocking Out Electricity Over Stake in Oil Lamps’

Former SEC Attorney and Senior Technical Analyst at I/O funds, Beth Kindigon Wednesday likened restrictive crypto policies to historic attempts to curb major advances, comparing them to “choking electricity because they had a stake in oil lamps.”

What happened: In an interview with Fox Business on Wednesday, Kindig suggested that resistance to regulation reflects “selfish motivations” rather than an enlightened view of the industry’s potential for innovation.

Kindig highlighted the crypto industry’s significant increase in political spending as an effort to protect innovation, with donations hitting an all-time high during the 2024 US election cycle.

According to recent Federal Election Commission filings, crypto companies contributed more than $200 million, making the industry the largest corporate donor for the election.

“The crypto community is saying, let’s focus on politics… let’s raise money and support the right candidate,” Kindig said, referring to an industry push to support political figures open to pro-crypto policies.

Among the biggest beneficiaries of this influx is the vice president Kamala Harris and former president Donald Trump.

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Top crypto figures such as Ripple Chris Larsen and backer of Coinbase Vinod Khosla supported Harris’ campaign, while Trump received support from Tether’s lawyer Howard Lutnick and the Winklevoss twins.

Political action committees (PACs) have also amplified the industry’s voice, with cryptocurrency-backed PACs like Future Forward raising substantial funds for Harris’ campaign, while a Trump-affiliated super PAC reportedly raised over $7.5 million in crypto donations.

Despite this growing influence, Kindig remains critical of the government’s current stance on crypto.

“The government is trying to stifle innovation,” she stressed, calling for clear and constructive political decisions.

She warned that failing to address the regulatory climate could slow technology adoption and limit U.S. leadership in the financial sector.

What’s next: The importance of crypto’s role in the U.S. financial landscape will be a central topic at Benzinga’s Future of Digital Assets event on November 19, where industry executives are expected to discuss regulation, innovation and trends crypto policies.

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