One of the controversial topics in the crypto space is regulation. While the community calls for clarity in the regulatory framework, regulators like the US Securities and Exchange Commission act against them without defining the dos and don’ts.
This situation has led many crypto firms in the US to <a href="https://www.reuters.com/technology/coinbase-ceo-crypto-firms-will-develop-offshore-without-clear-regulations-2023-04-18/” rel=”nofollow noopener” target=”_blank”>seek offshore expansion in crypto-friendly countries. But a recent development suggests that the regulators have taken up the calls for clarity.
The House Financial Service Committee Chairman, Patrick McHenry, announced a series of joint hearings to address the US digital asset market structure.
Committee Is Ready To Create Clear Rules For crypto Assets: McHenry
According to the joint announcement, many top shots in the US Congress have teamed up to ensure a clearer regulatory framework for the US digital asset space.
These include Congressman McHenry, Glenn Thompson, Chairman of the House Agriculture Committee, French Hill, Chairman of the Digital Assets, Financial Technology & Inclusion Subcommittee, and the Commodity Markets Digital Assets and Rural Development Subcommittee Chairman, Dusty Johnson.
The statement revealed that the committees would jointly pass and sign clear rules for the digital asset ecosystem into law. It continued that they must strike a suitable balance between protecting consumers and encouraging responsible innovation.
In another speech during the Consensus event on April 28, the Chairman of the House Financial Service Committee, McHenry, threw more light on the upcoming hearings in May. According to the chairman, the hearings will mark the first holistic view of digital asset regulation by the House committee.
Further, McHenry disclosed that they would report a bill in the next two months dealing with the “capital raising process for digital assets.” Also, the bill will cover the proper transition process for a product to move from the Securities regime to the Commodities while preserving its rights to other products that don’t belong to any of the regimes.
McHenry Mentions Support For Sen. Lummis Bipartisan Bill
Most importantly, the HFSC chairman reiterated that the hearings aim to establish a bill to provide the regulatory clarity the crypto sector demands. But it will support Senator Lummis and Kirsten Gillibrand-led bipartisan bill.
Recall that the Lummis-Billibrand bill “Responsible Financial Innovation Act” was introduced in the United States Senate in June 2022. The bill encompassed many aspects of digital assets operations, including stablecoin regulation, crypto taxation, and the jurisdictions of the Commodities Futures Trading Commission (CFTC) and the SEC.
However, there have been delays in passing the bill into law due to the stances of other Senators not well-versed in crypto-related operations. Notably, the Senators have since made some revisions to the bill and will release the latest draft soon.
According to McHenry, the Responsible Financial Innovation Act is the contributions from the Senate, while the upcoming bill is from Congress.
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