The US Financial Services Committee is set to vote on a comprehensive crypto-asset bill in the coming weeks to create a clear regulatory framework for the cryptocurrency industry. The move comes after a recent committee session focused on providing clarity on the digital asset market structure and regulation of stablecoins. Here are the details…
July 4 is set for the crypto money law
Republican Chairman Patrick McHenry of the U.S. House of Representatives Financial Services Committee plans to hold a committee vote on the digital asset bill after lawmakers return from the July 4 recess. “I intend this committee to mark some form of this legislation when we return from the July 4th holiday,” McHenry said. During a debate on Tuesday, both Democrats and Republicans of the US House of Representatives Financial Services Committee discussed two bills aimed at clarifying the crypto-asset market structure and regulation of payment stablecoins. These bills represent the first steps towards regulating the cryptocurrency industry in the United States.
As we previously reported as Cryptokoin.com, US House laws were set up designed to provide clarity regarding the crypto-asset ecosystem and oversight of the crypto industry. The main purpose of the bill is to give regulatory jurisdiction to both the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) in separate areas of the crypto industry.
SEC’s regulatory approach is eagerly awaited
Many crypto firms are seeking regulatory clarity from the US Congress due to the SEC’s regulatory enforcement approach, which argues that most crypto assets should be classified as securities. The regulations proposed by the SEC have caused confusion in the industry as crypto exchanges and firms struggle to understand and comply with registration requirements. The House Financial Services Committee acknowledges the flawed approach taken by the SEC and its Chairman, Gary Gensler. Democratic Ranking Member Maxine Waters expressed her concerns that allowing crypto exchanges to take temporary registration could unintentionally enable bad actors. Senators Sherrod Brown and Elizabeth Warren take a skeptical stance on crypto assets.
Moreover, the recent actions of the SEC have raised suspicions within the crypto industry. Following the collapse of FTX, the SEC’s approach to cryptocurrencies and exchanges resulted in significant financial losses for investors. Many in the crypto community believe that the SEC’s lawsuits against major platforms like Binance and Coinbase are primarily aimed at asserting jurisdiction over the industry rather than protecting investors.
In light of this situation, a U.S. District Court judge has ordered Binance.US and the SEC to work on a settlement agreement, recognizing that an asset freeze could have a detrimental effect on investors. With the vote on the comprehensive digital asset bill, the U.S. House aims to provide much-needed regulatory clarity to the cryptocurrency industry. This move is expected to foster innovation and responsible growth while shielding investors from the potential risks associated with the evolving crypto-asset landscape.
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