The crypto industry has gone through a lot of challenges. The bear market dragged its total market cap from $3 Trillion to around $700 million. To make matters, worst government regulators made it hard for crypto projects to do business in the United States. But it seems like some lawmakers have noticed that the overreach of financial agencies is doing more harm than good. They are now trying to establish some clarity for the good of all stakeholders.
Congressional Chairs to Create Clearer Crypto Framework
Four House Committee Chairmen have announced a joint effort to create a clearer and balanced regulatory framework for digital assets and their underlying blockchain technology. They will hold hearings to identify and address the regulatory challenges and opportunities of this emerging technology. They aim to protect consumers without stifling growth in this emerging technology.
The House members are, the House Financial Services Committee Chair, Patrick McHenry (NC-10), House Agriculture Committee Chair, Glenn “GT” Thompson (PA-15), Digital Assets, Financial Technology and Inclusion Subcommittee Chair, French Hill (AR-02), and Commodity Markets, Digital Assets, and Rural Development Subcommittee Chair, Dusty Johnson (SD-AL)
Representatives Questioning EO Regarding Digital Assets and Crypto
Aside from the announcement of the four chairmen, 2 other representatives have sent a letter to Cecilia Rouse, chair of the Council of Economic Advisers (CEA). Representatives Warren Davidson and Mike Floor are seeking the rationale for the provision of a Presidential Order regarding the responsible development of digital assets. The congressmen surmised that the administration’s hostile view on crypto is driving innovations abroad.
- The letter highlighted the issue of classifying assets. How can crypto projects be expected to comply with regulations if the laws are conflicting? For example, how can an asset be classified as a security or commodity?
- Rep. Davidson and Floor are also asking what is the CEA’s rationale for dismissing Congress’s role in creating a regulatory framework for digital assets.
- They also asked if CEA considered the repercussions to U.S. competitiveness if crypto projects move outside of the country.
- The letter also asked how FedNow Instant Payment System and Central Bank Digital Currency could provide a more inclusive financial system than digital assets.
The Members of the House Are on the Right Track
Laws and regulations were created to protect all market stakeholders. But to do this properly, the laws and regulations should be clear and easy to understand. It is not right to label a crypto project as an unregistered security if the regulators themselves can’t be 100% sure if an asset is a security or not. One clear example is when the SEC chair was asked by Rep. McHenry if Ether was a security.
The Congressmen are doing their jobs to represent the people and make sure that those who voted for them are not excluded from taking part in an emerging industry. They also recognized that taking a hostile stance against crypto will only drive investors to friendlier foreign jurisdictions. In the end, the digital asset industry will flourish and it is only a question if the U.S. will reap the benefits.
Other related articles:
Apparent Blacklisting of Crypto from Banks Being Investigated by Congress
Gensler Receives Powerful Lashes from Congress Majority Whip
Source: Financial Services Committee
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