• US Congress announces joint hearings to address the US digital asset market structure
• House Financial Service Committee Chairman, Patrick McHenry, to report a bill in the next two months dealing with the “capital raising process for digital assets”
• Bill will cover transition process for a product to move from Securities regime to Commodities
US Regulators Take Calls For Clarity On Crypto Regulation
The crypto space is mired in controversy over regulation. The lack of clarity in regulations has led many crypto firms in the US to seek offshore expansion in crypto-friendly countries. However, recent developments suggest that the regulators are taking calls for more clarity seriously.
Multi-Committee Hearing To Address Digital Asset Market Structures
The House Financial Service Committee Chairman, Patrick McHenry, recently announced a series of joint hearings to address the US digital asset market structure. This includes Congressman McHenry himself as well as Glenn Thompson, Chairman of the House Agriculture Committee, French Hill, Chairman of the Digital Assets and Financial Technology & Inclusion Subcommittee, and Dusty Johnson, Chairman of the Commodity Markets Digital Assets and Rural Development Subcommittee.
McHenry Announces A Bill To Cover Transition Process
During his speech at Consensus event on April 28th 2021, McHenry revealed that they would report a bill in the next two months dealing with the “capital raising process for digital assets”. Additionally, it will cover transition process for a product to move from Securities regime to Commodities while preserving its rights for other products that don’t belong to any of these regimes.
McHenry Shows Support For Lummis Bipartisan Bill
McHenry also showed support for Sen. Cynthia Lummis’ bipartisan bill which seeks an amendment under Investment Company Act 1940 exempting certain virtual currency businesses from registration requirements and other provisions related thereto. Lastly, he urged Congressmen and Senators alike to come together and create an effective regulatory framework which can protect consumers without stifling innovation.
Conclusion
Regulation has always been a hot button issue amongst crypto enthusiasts however it seems like progress is being made towards creating clear rules governing this space. With multiple committees coming together under one banner with representatives from both sides of Congress it looks like we are closer than ever before towards achieving regulatory clarity within this space.