US House Financial Services Committee Chairman Patrick McHenry recently took to Twitter to indirectly support BlackRock iShares spot Bitcoin ETF, attacking Gary Gensler-led Securities and Exchange Commission (SEC) regulation by enforcement approach to regulate the digital asset market. McHenry has also scheduled two US SEC oversight hearings on June 22 that are expected to shed light on the future regulatory frameworks for digital assets and stablecoins.
While some may welcome his stance, others in the crypto community have expressed outrage over Prometheum’s US SEC and FINRA approval, which they deem “controversial.” Prometheum, a special purpose broker-dealer, has become a point of contention as it doesn’t offer trading in top crypto assets such as Bitcoin and Ethereum. Furthermore, Prometheum co-CEO Aaron Kaplan has been accused of being Gary Gensler’s mouthpiece, arguing that the current regulatory frameworks set up by the US SEC are the clear path for the digital asset industry.
These opposing viewpoints highlight the need for clarity in the crypto industry regarding regulation. Patrick McHenry believes the draft stablecoin bill marks the first step toward the regulation of crypto in the US and plans to hold a committee vote on a digital asset bill next month to bring further clarity. This decision will also determine whether the SEC or the Commodity Futures Trading Commission (CFTC) has jurisdiction over the crypto industry.
The crypto market reacted positively to the news of BlackRock iShares filing a spot Bitcoin ETF application, with Bitcoin’s price jumping 3% in the last 24 hours to trade above $25,500. Ethereum’s price also soared, gaining over 2% in the past 24 hours and currently trading at $1,665.
While McHenry’s push for clear regulatory frameworks offers hope for the crypto industry, some may question the fairness of the chosen approach given Prometheum’s controversial involvement. In addition, the SEC’s regulation by enforcement approach has been criticized for picking winners and losers based on inconsistent factors. Therefore, the outcome of the upcoming hearings and the committee vote has the potential to impact not only the crypto market but the industry’s ability to operate with clear guidelines and regulations. As the regulatory path for crypto in the US becomes more defined, investors, enthusiasts, and skeptics alike will be watching closely for indications of how the industry will adapt to these changes.
Source: Coingape
