The United States House of Representatives Financial Services Committee has set the date for the hearing on cryptocurrency, aiming to address its future and bring clarity to the digital assets ecosystem. House Financial Services Chairman Patrick McHenry has officially announced a full committee hearing scheduled for Tuesday, June 13th.
The hearing is titled “The Future of Digital Assets: Providing Clarity for the Digital Asset Ecosystem,” reflecting its objective to shed light on the regulatory landscape and offer guidance for the evolving world of digital assets.
As part of its responsibilities, the Financial Services Committee holds oversight over various aspects of the United States economy. This includes supervising individual reserve banks, overseeing the Federal Reserve Board, monitoring activities related to the United States Treasury, regulating the capital markets, and managing the production and distribution of currency.
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According to the committee’s announcement, the upcoming hearing will be live-streamed on its official website. The announcement also coincides with the intensified efforts of the US Securities and Exchange Commission (SEC) in cracking down on the cryptocurrency industry.
In quick succession, the regulatory body filed two lawsuits against leading crypto exchanges, namely Binance and Coinbase.
Although the committee did not provide specific details about the hearing’s agenda, members of the cryptocurrency community are eagerly anticipating that it will address some of the most critical issues within the industry.
SEC Commissioner Gensler Faces Criticism From Republican Lawmakers
With the rapid growth and evolving nature of the crypto space, there are numerous pressing matters that require attention, such as regulatory frameworks, investor protection, market stability, and innovation.
In a recent development, Republican lawmakers, namely Patrick McHenry and Glenn Thompson, have released a draft bill that aims to establish a clearer regulatory framework for cryptocurrencies and exchanges.
The proposed bill suggests allowing crypto assets to be traded on more traditional trading platforms. Additionally, it seeks to introduce a division of authority between the US Securities and Exchange Commission (SEC) and the US Commodity Futures Trading Commission (CFTC) regarding the oversight of crypto-related activities.
The discussion draft authored by McHenry and Thompson represents an effort to address the regulatory challenges and provide a more defined plan for the crypto industry.
Last month, the US House of Representatives Financial Services Committee and Agriculture Committee held their first joint hearing on digital asset regulation.
During the hearing, lawmakers raised concerns about what they saw as excessive regulatory measures implemented by US SEC commissioner Gary Gensler. The criticism centred around the perception that the regulatory actions taken may have gone beyond what was necessary or appropriate for the digital asset industry.
SEC’s Ambiguous Crypto Guidelines Pose Challenges
In response to the recent lawsuits filed by the Securities and Exchange Commission (SEC) against Coinbase and Binance, pro-crypto Republican US Senator Cynthia Lummis expressed her concerns about the lack of clear legal guidance regarding the distinction between securities and commodities.
Lummis criticized the SEC for its reliance on regulation through enforcement, stating that it has had a detrimental impact on investors. According to Lummis, the SEC’s failure to provide adequate guidance on this matter has created uncertainty and hindered the growth of the crypto industry.