In the coming weeks, the US Financial Services Committee will vote on a comprehensive digital asset bill to establish a regulatory framework, aiming to bring clear rules and guidelines for the crypto industry. This vote follows a Financial Services Committee hearing that focused on providing clarity for the digital asset market structure and regulation of payment stablecoins.
US House Financial Services Committee Republican Chairman Patrick McHenry plans to hold a committee vote on the digital asset bill after lawmakers return on July 11. The intended outcome is to offer clarity to the crypto industry and is seen as the first step towards regulating crypto in the US.
The digital asset ecosystem has been seeking such clarity from the US Congress. The US Securities and Exchange Commission (SEC) has taken a regulation-by-enforcement approach, claiming most crypto assets are securities. This stance requires crypto exchanges and firms to register with its proposed regulation, which some in the industry argue is unclear. The House Financial Services Committee recognizes the issues with the SEC’s approach and that of Chair Gary Gensler.
Democrat Ranking Member Maxine Waters has raised concerns that allowing crypto exchanges to receive provisional registration could enable bad actors. Senators Sherrod Brown and Elizabeth Warren, while also critical of crypto assets, appear skeptical over the current approach.
Some have suggested that the SEC’s actions towards crypto and exchanges following the FTX collapse has led to investors losing billions of dollars. It has been argued that the SEC lawsuits against Binance and Coinbase were not made with investor protection in mind, but rather to assert the SEC’s jurisdiction over the crypto industry.
A U.S. District Court judge has ordered Binance.US and the SEC to work towards a compromise agreement, stating that freezing assets will impact investors. As the regulatory landscape for cryptocurrencies continues to develop, it is essential for investors and crypto enthusiasts alike to stay informed and up-to-date with the latest news and developments.
In conclusion, the upcoming vote on the digital asset bill aims to offer much-needed clarity for the crypto industry. This bill can potentially address issues related to the SEC’s regulation-by-enforcement approach and provide a more structured framework for the growing digital asset market. However, with some influential figures expressing concerns and skepticism over crypto assets, it remains to be seen how the final regulations will balance the need for investor protection with fostering innovation and growth within the industry.
Source: Coingape
