Democrats Blast Crypto Bill
The U.S. Congress held its first-ever markup for digital asset legislation, aiming to establish clear jurisdiction for market regulators. However, Democrats were critical of the bill, calling it overly friendly to the crypto industry.
Main Breakdown:
– The bill clarifies how the Howey Test applies to digital assets, focusing on “decentralization” and “functionality.”
– Rep Maxine Waters criticized the bill, calling it a “wish list” for the industry and disregarding the views of the Biden Administration and SEC.
– Rep Brad Sherman claimed the bill would create loopholes for traditional financial institutions to bypass existing requirements.
– Rep Ritchie Torres supported the bill as a good-faith attempt to create clarity in the regulatory landscape.
Better Than Nothing
While the bill is not perfect, Torres believes it represents a necessary step towards creating clarity where none currently exists. The legislation seeks to navigate the complexities of digital assets and their classification as securities, although concerns about potential loopholes and lack of SEC regulation remain.
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