Maxine Waters Wants Lawmakers to Study Crypto Firms
U.S. Representative Maxine Waters, a well-known critic of cryptocurrency, has expressed her desire to organize a group of lawmakers to delve deeper into the operations of crypto firms and examine how they should be regulated. During a House Financial Services Committee panel focused on digital assets, Waters stated that she wants Congress members to ask more questions and become more involved in understanding the activities of these companies.
This announcement comes as some lawmakers, mostly Republicans, are pushing for legislation to regulate the crypto industry. Waters has previously used Securities and Exchange Commission (SEC) Chair Gary Gensler’s remarks about crypto firms registering with the agency to counter a Republican-led market structure bill. Representative Patrick T. McHenry, who is retiring and chairs the House Financial Services Committee, has been instrumental in advancing crypto legislation.
Waters Calls for Special Sessions with Congress
During the committee hearing, Waters asked Valerie Szczepanik, director of the SEC’s Strategic Hub for Innovation and Financial Technology (FinHub), if the SEC would consider holding special sessions with members of Congress. She wanted these sessions to address potential issues and pitfalls associated with cryptocurrencies and provide information that would help lawmakers make informed decisions.
Szczepanik responded by suggesting that lawmakers reach out to the SEC directly for assistance and guidance on crypto-related matters.
Crypto Industry Sets Lobbying Spending Record
A recent report by Reuters revealed that lobbying spending in the crypto industry has reached a new record. In the first three quarters of 2023, crypto companies spent nearly $19 million on lobbying efforts, compared to $16 million during the same period in 2022. This increase in lobbying activity reflects the growing influence and importance of cryptocurrencies in the political landscape.
Clarity Issues Surrounding Digital Assets
During the hearing, Representative Tom Emmer questioned Szczepanik about her review of a speech by the SEC’s former corporation finance director. The speech argued that digital assets with sufficiently decentralized networks, such as Ethereum (ETH), should not be classified as securities. Emmer inquired about Szczepanik’s preference for providing less detail in the speech, to which she confirmed but refrained from commenting on whether Ether is considered a security.
SEC Chair Gensler has also avoided directly answering questions about whether Ether should be classified as a security or not.
Hot Take: Lawmakers Seek Deeper Understanding of Crypto
Maxine Waters’ call for lawmakers to study crypto firms and gain a better understanding of the industry reflects the growing interest and concern surrounding cryptocurrencies in Congress. With some lawmakers pushing for regulations and others advocating for more clarity, it is crucial for policymakers to have access to accurate information and insights. Special sessions with regulatory agencies like the SEC can help bridge the knowledge gap and ensure that lawmakers make informed decisions that balance innovation and investor protection. As lobbying spending in the crypto industry reaches new heights, it becomes even more essential for lawmakers to actively engage with experts and stakeholders to shape effective and balanced crypto regulations.
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