The New Bill on Crypto Regulation
The US Congress is considering a new bill that aims to regulate crypto exchanges and force them to register with the Securities and Exchange Commission (SEC). This bill, called the “Financial Innovation and Technology for the 21st Century Act,” was introduced by Republican members of the House and is a collaboration between the House Committees on Financial Services and Agriculture and President Biden’s Democratic administration.
Key Points:
- The SEC is responsible for regulating securities markets and exchanges.
- The recent court ruling stated that cryptocurrencies traded on secondary markets are not securities.
- The new bill proposes assigning the task of overseeing crypto exchanges to the Commodity Futures Trading Commission (CFTC) instead of the SEC.
- The bill is a policy initiative by Republican members of the House.
- The bill aims to provide regulatory clarity and prevent incidents like FTX’s theft of customer funds.
Comments on the New Bill
According to the Chairman of the Subcommittee on Digital Assets, stakeholders and market participants were consulted to address regulatory gaps. The bill aims to give both the CFTC and SEC a seat at the table and provide clarity for the crypto industry. Republican Patrick McHenry emphasizes the importance of the US maintaining its position as a global leader in innovation and adoption of new technologies.
The Likelihood of Success
If the bill receives support from both the Democratic government and the Republican-majority Congress, it may have a chance of success. However, the timing is a challenge, as there will be an election next year. The success of the bill may depend on whether it becomes the primary focus for Congress and the potential support from Biden’s Democratic cabinet. There is a possibility that the bill could be passed more quickly than usual, but it remains to be seen if it is a genuine initiative or political propaganda.
Hot Take
The US is at risk of falling behind in crypto regulation and losing its global financial leadership. While the new bill shows a concrete effort to address the issue, its success remains uncertain due to timing and political factors. However, it is crucial for the US to provide regulatory clarity and certainty to enable the digital asset ecosystem to thrive and maintain its position as an innovative leader.