On February 6, leaders from the House Financial Services and Agriculture Committees sent a letter to Treasury Secretary Janet Yellen expressing concerns about the lack of regulation in the spot market for digital assets that are not securities. The letter was sent by Patrick McHenry, Glenn Thompson, French Hill, and Dusty Johnson, who are chairmen of various House committees. They called on Yellen, as Chair of the Financial Stability Oversight Council (FSOC), to address the regulatory gaps in this market.
The House Financial Services Committee also held a hearing with Yellen on the FSOC’s annual report on the same day. This letter follows calls from the FSOC and Commodity Futures Trading Commission (CFTC) Chairman Rostin Behnam to fill regulatory gaps in the crypto market. They argue that there is already proposed legislation, such as the Financial Innovation and Technology Act for the 21st Century (FIT21), that would grant jurisdiction over non-security assets to the CFTC.
The letter concluded that it has been over a year since the crypto collapses and contagions of 2022, yet robust regulations are still lacking in the U.S. There is frustration with the procrastination of the Biden Administration in regulating digital assets, which has led to an exodus of talent and innovation. Meanwhile, agencies like the SEC have taken it upon themselves to file lawsuits against crypto companies for non-compliance with laws that don’t even apply to them.
Hot Take: Lack of Regulation Hinders Crypto Market Growth
The lack of regulation in the spot market for digital assets continues to hinder growth and innovation in the crypto market. Despite calls from industry leaders and regulators to address these regulatory gaps, progress has been slow. The House Financial Services and Agriculture Committee leaders have expressed their concerns to Treasury Secretary Janet Yellen, urging her to take action as Chair of the FSOC. The Biden Administration’s procrastination on this issue has resulted in an exodus of talent and a hostile environment for crypto companies. It is crucial for the appropriate agencies to have jurisdiction over non-security assets and for robust customer protections to be implemented. Without proper regulation, the U.S. risks falling behind in the global crypto market.
By
By
By