When it comes to getting crypto legislation off Capitol Hill and onto the president’s desk, politics still carries weight, as former SEC Special Counsel Coy Garrison points out during a recent webinar. The current market structure discussion draft is a good starting point, but Republicans are going to need to get Democrats on board for the legislation to succeed.
Proposed by two House Republican Committee leaders, Patrick McHenry of the Financial Services Committee and Glenn Thompson of the Agriculture Committee, the draft has some significant sections that require further discussion and negotiation. One concern raised by Garrison is the approach to regulation taken by SEC Chair Gary Gensler, which McHenry is deeply concerned about.
The bill has several strong points, such as establishing a path forward for token issuers to register – a key issue for exchanges and crypto companies. Additionally, the disclosure requirements are clear and strict, ensuring regulators will have adequate information about a token’s economics and distribution plan.
Furthermore, the bill requires the SEC to acknowledge the benefits of technology in the trading of digital assets, a long-standing complaint in the industry. However, the bill has not yet been formally introduced, and it’s likely that lawmakers will wait for bipartisan support before bringing it to the floor.
As Garrison puts it, the chance for this bill to become law is not great, given its current state and political climate. However, that doesn’t mean the legislation can’t serve as a basis for future, more refined legislation that appeases both sides of the aisle.
While the push for regulation continues to face skepticism, it’s essential to consider the broader implications on the growing crypto space. The increasing frustration within the industry indicates a strong desire for clearer rules and guidance from Congress on how to properly navigate the market. Legislation addressing market structure could be a crucial step.
Whether this particular bill succeeds or not, crypto enthusiasts should keep an eye on its progress and the potential for more comprehensive legislation in the future. Until then, the ongoing political entanglements will remain a fascinating aspect of the rapidly developing crypto landscape.
Source: Blockworks
