U.S. Closes in on Crypto Consensus Amid Plans for SEC & CFTC Collab
TL;DR Two key panels in the U.S. Congress have announced collaboration plans to work together on crypto regulations in order to close the divide between the SEC and CFTC and create a unified regulatory framework. Democrats are skeptical of creating new rules, preferring instead to close existing gaps in existing regulations. The lack of regulatory clarity is already pushing crypto businesses abroad, prompting lawmakers to act quickly to avoid further losses.
The lack of a crypto regulatory framework is a major pain point for firms.
Lawmakers are now looking to close the divide with an unprecedented partnership.
The lack of a crypto regulatory framework in the United States remains a concern for many, particularly as the U.S. Securities and Exchange Commission has ramped up its crypto enforcement efforts.
The situation may, however, be set to change as two key panels in Congress have announced collaboration plans.
The U.S. House Committee on Financial Services and the House Committee on Agriculture have revealed plans to work together on crypto regulations, as reported by Roll Call on Tuesday, April 2.
The partnership is significant as the House Committee on Financial Services oversees the SEC while the House Committee on Agriculture oversees the Commodities Futures Trading Commission.
Both agencies have claimed jurisdiction over the nascent market, with conflicting stances in enforcement actions deepening the confusion within crypto markets.
Collaboration between the committees overseeing these agencies could potentially bring an end to the confusion and clarify once and for all the classification of crypto assets.
"Two committees working hand in hand on a joint legislative product like this is unprecedented, and I believe it vastly increases our chances of getting it right," Representative French Hill, chairman of the Financial Services Subcommittee on Digital Assets, Financial Technology, and Inclusion reportedly asserted.
The joint goal of creating new rules for the crypto markets is not without opposition, though; some Democrats still need convincing.
Democrats Are Skeptical
Democratic leaders oppose creating new rules for the crypto market, arguing that regulations already exist, echoing the views of SEC Chair Gary Gensler. Instead, these Democrats suggest closing gaps in existing rules.
Republicans heading both committees nonetheless are undeterred by this, with plans to hold a joint hearing this month in full swing.
“I anticipate bipartisan engagement,” Hill reportedly opined, hoping colleagues across the aisle would come around as talks progress.
On the Flipside
The 27-member European Union Parliament recently passed the Markets in Crypto Assets (MiCA) bill.
The United Kingdom appears to be making significant progress towards creating a crypto regulatory framework.
Why You Should Care
The planned collaboration comes as the lack of regulatory clarity is already pushing crypto businesses abroad.
To learn more about the confusion caused by the conflicting position of regulators, read this:
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