US House Committee Seeks Crypto Clarity Amid SEC Contradictions and Offshore Exodus

Futuristic digital economy scene, US House Financial Services Committee members in discussion, intricate web of crypto and digital asset regulations, contradicting signals from the SEC, somber mood, light emanating clarity, financial firms moving towards offshore waters, muted colors with occasional bright accents, cubist-inspired artistic style.

The U.S. House Financial Services Committee is making strides to clarify digital asset regulations, as they believe that the actions of SEC Chair Gary Gensler against crypto are “contradictory” and lack detail on which crypto assets should be considered securities. With two crucial hearings on the horizon and US-based crypto firms planning to move offshore due to regulatory crackdowns, the House Financial Services Committee is pointing fingers at the Biden Administration for creating confusion.

Scheduled for May 10, the hearing “The Future of Digital Assets: Measuring the Regulatory Gaps in the Digital Asset Markets” aims to shed light on this issue. Republicans Warren Davidson and Mike Flood have penned a letter to the Biden Administration’s Council of Economic Advisors, requesting clarity regarding how the FedNow Instant Payment System and a Central Bank Digital Currency could provide a more inclusive financial system than digital assets. The paired also expressed concerns about the recent shift in position concerning the advantages of digital assets and distributed ledger technology.

The lack of regulatory clarity is pushing firms to move offshore, as digital assets are pivotal to the future of our digital economy. The Biden Administration’s response is driving innovators away from America and towards international competitors, according to Rep. Mike Flood.

On the same day, the U.S. House Financial Institutions and Monetary Policy Subcommittee has slated a hearing on federal responses to recent bank failures. The hearing, titled “Federal Responses to Recent Bank Failures,” seeks answers from the FDIC and Federal Reserve concerning their approach to preventing bank failures and managing risks to the U.S. economy.

Banking shares continue to decline after the collapse of the First Republic Bank, with PacWest Bancorp plunging 52% on Wednesday. Furthermore, the impending debt ceiling crisis and heightened borrowing rates exert additional pressure on global markets and the economy.

The U.S. House Financial Services Committee is looking into potential coordinated efforts by U.S. regulators for “Operation Choke Point 2.0” to de-bank the crypto market, as CoinGape Media previously reported. With more US bank failures seemingly on the horizon, it remains to be seen who the SEC will hold accountable.

Source: Coingape

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