US regulators CFTC and SEC gain more regulatory power with a new cryptocurrency law.
US revised June’s cryptocurrency law
The new law highlights the importance of CFTC and SEC cooperation. The bill stated that they needed regulation due to the growing popularity and use of cryptocurrencies. The CFTC and SEC are playing an active role in collaborating to better understand the crypto market and protect participants. The bill was presented by Glenn Thompson, chair of the House Agriculture Committee, and French Hill, chair of the Digital Assets Subcommittee. After Congressman Hill said the framework would “protect investors and drive innovation in the United States,” he added:
This law would not only prevent FTX from stealing billions of customer funds, but would also create strong consumer protections and clear rules of the road for market participants.
Also, the bill aims to clarify crypto regulatory definitions and covers digital asset exemptions. However, it also clarified how crypto companies can register with financial regulators, the CFTC, and the SEC. Additionally, the bill aims to replace archaic US securities laws. So the SEC will have to consider “innovation” as a factor when taking action. “Securities laws and regulations do not take into account many of the unique characteristics of digital assets,” Hill said.
CFTC and SEC’s hand is getting stronger
Representative Dusty Johnson said, “The crypto industry wants clarity. Our joint design gives both the CFTC and the SEC a seat at the table.”
Meanwhile, Patrick McHenry, Chairman of the House Financial Services Committee, said, “Digital assets are not just revolutionizing our financial system. At the same time, the underlying blockchain technology holds promise as the building blocks for the next generation internet.”
As we have reported as Kriptokoin.com, the new bill in question first appeared in June. It was noteworthy that the change came shortly after the XRP lawsuit.
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