Regulation
US House Finance Committee Slams SEC’s Crypto Approach
The U.S. House Finance Committee has aligned itself with billionaire Mark Cuban’s criticism of the Securities and Exchange Commission’s (SEC) approach to the securities industry. cryptography.
In a May 11 social media post, the Committee explained why Congress must pass the Financial Innovation and Technology for the 21st Century Act (FIT21).
US House Committee Believes FIT21 Act Will Solve Crypto Regulation Issues
This weekend, Cubans used social media to express concerns about how the SEC’s position against cryptocurrencies could affect President Joe Biden’s re-election bid. Cuban continued his criticism of the financial regulator in a May 11 message on social media, saying that the commission and its president: Gary Gensler“were trying to destroy the crypto industry”.
“The crypto industry wants a way to register and comply. He wants a way to keep the speculative noise at bay. Instead, the SEC makes things so expensive, time-consuming, and difficult for those who want to comply, that junk tokens sit alongside real companies and investors have no way of knowing what is trash and what. which is real,” Cuban said. added.
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In response, the Finance Committee of the United States House of Representatives recognized Cuban, emphasizing that the SEC’s current approach hinders the industry’s ability to comply. Therefore the Committee pushes for FIT21 law to fill these regulatory gaps.
The committee believes the legislation would provide much-needed clarity and consumer protection. The law would also end SEC regulation through enforcement and allow the U.S. digital asset ecosystem to thrive.
Additionally, upcoming legislation aims to clearly define the responsibilities of both Commodity Futures contracts Trade Commission (CFTC) and the SEC. Under the proposed legislation, the CFTC will expand its oversight to crypto products, while the SEC’s regulatory domain will be clarified regarding cryptocurrencies offered in the form of investment contracts.
“The Financial Innovation and Technology for the 21st Century Act is the culmination of years of bipartisan efforts to finally provide clarity… This legislation will solidify U.S. leadership of the global financial system for decades to come and strengthen our role as an international innovation hub. said Patrick McHenry, chairman of the House Financial Services Committee.
Notably, efforts to advance the FIT21 Act have continued since its committee approval in July 2023, with a push for a floor vote expected in the coming weeks. Interestingly, the bill has garnered support from major crypto players. Grayscale Bitcoin ETF Issuer said the proposed law “is a welcome effort to achieve regulatory clarity for the crypto ecosystem.”
Learn more: How does regulation impact crypto marketing? A complete guide
Likewise, Matt Corva, general counsel at Consensys, said the settlement would help clear up the regulatory mess created by federal agencies.
“Regulation could come at the right time to clean up the mess created by agencies outside their authority and by the APA that have gone unchecked for too long. It will not be [without] compromise, but sensible regulation will move things forward for market participants, innovators and consumers,” Corva REMARK.
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