Congress to Vote on Crypto Regulation: Clarity for US Crypto Business
Overview
- The US Financial Services Committee plans to take a committee vote in the coming weeks on a comprehensive digital asset bill.
- This legislation aims to provide clarity on the structure of the digital asset market and regulation of payment stablecoins.
- The SEC requires crypto exchanges and businesses to register under its proposed, though hazy, legislation.
Legislation Aim
The US Financial Services Committee plans to take a committee vote in the coming weeks on a comprehensive digital asset bill. This legislation is a crucial first step towards official US crypto regulation. It will build a regulatory framework and introduce clear regulations and standards for the crypto business. It also aims to provide clarity on the structure of the digital asset market and regulation of payment stablecoins.
SEC Requirements
The US Securities and Exchange Commission (SEC) has embraced a regulation-by-enforcement strategy, alleging that most cryptocurrencies are securities. Crypto companies have thus sought clarification from Congress. The SEC requires crypto exchanges and businesses to register under its proposed, though hazy, legislation. Maxine Waters, Ranking Democrat in the House, has expressed concern that criminals may benefit from granting temporary registration to cryptocurrency exchanges.
Skepticism Towards Crypto
Both senators Brown and Warren have shown skepticism towards crypto due to possible criminal activities taking place as well as potential investor protection issues that could arise with cryptocurrency trading activities taking place without proper oversight by authorities like the SEC or CFTC. < h2 >Conclusion
The US House of Representatives is reportedly working on legislation that will regulate the crypto business and digital asset ecosystem by granting parts of it to authorities such as the Securities & Exchange Commission (SEC) & Commodity Futures Trading Commission (CFTC). Both Democrats & Republicans have voiced their support for this measure at Tuesday’s hearing held by the House Financial Services Committee but skeptics remain wary about potential risks posed by unregulated trading activities in this new space.