Lawmakers Seek Clarity on Crypto Regulation
Four U.S. lawmakers have written to Treasury Secretary Janet Yellen expressing concerns about the lack of oversight in the crypto market. These lawmakers, who chair various committees, want clarification on how existing laws should be applied to cryptocurrencies like bitcoin and ether. The letter follows Yellen’s call for Congress to pass legislation to regulate stablecoins and the spot market for non-security crypto assets.
Solving Oversight Gaps
In the letter, the lawmakers highlight the collapse of FTX crypto exchange and their efforts to draft legislation that would increase regulatory oversight. They mention the Financial Innovation and Technology Act for the 21st Century (FIT21), which would grant regulators clear authority over digital asset spot markets and ensure consumer protections.
Concerns About FSOC
The lawmakers express concern over the lack of oversight in the digital asset markets that has been repeatedly warned of by the Financial Stability Oversight Council (FSOC), which Yellen chairs. They stress that the gaps they aim to address in their legislation align with the FSOC’s identified areas of concern.
Queries for Yellen
The Congress members ask Yellen several questions to better understand how the FSOC coordinates with the SEC and CFTC for oversight of spot markets for non-security digital assets. They request details about the Digital Assets Working Group’s meetings and seek clarification on the FSOC’s position regarding securities laws and crypto issuers. They also question the adequacy of reactive legal authority and ask whether bitcoin and ether are considered securities.
Hot Take: Lawmakers Demand Answers on Crypto Oversight
Four U.S. lawmakers have sent a letter to Treasury Secretary Yellen, seeking clarity on the application of existing laws to cryptocurrencies. They express concerns about the lack of oversight in the digital asset markets and highlight the need for increased regulatory control. The lawmakers ask Yellen to address specific questions regarding the coordination between regulatory agencies, the FSOC’s position on securities laws, and the categorization of bitcoin and ether. This letter comes after Yellen’s call for Congress to pass legislation to regulate stablecoins and the spot market for non-security crypto assets.
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