A Republican-led effort to create new rules for crypto markets in the U.S. may face a significant hurdle in the form of the Securities and Exchange Commission (SEC). The proposed legislation would direct U.S. markets regulators to explicitly define digital assets as commodities and grant the Commodity Futures Trading Commission (CFTC) greater power over crypto commodity markets. However, the SEC has not provided the technical assistance requested for the complex bill, potentially hindering efforts to attract Democratic support. The SEC’s reluctance to adjust existing securities laws and fears of creating loopholes further complicate the issue. The industry’s reliance on securities laws has resulted in many digital assets being classified as securities. Technical assistance could also become subject to lawsuits, as demonstrated by documents related to a 2018 speech by former SEC official William Hinman. Congressional offices often seek agency assistance when drafting complex bills, and Democratic support for the market structure legislation remains unclear.
By
By
By
By
By
By