SEC delays assistance for US crypto market bill.

SEC delays assistance for US crypto market bill.

The SEC’s Delay in Assisting Congressional Bill to Regulate Crypto Markets

The United States Securities and Exchange Commission (SEC) has allegedly hindered progress on a congressional bill aimed at regulating the crypto markets. Despite good communication with the House, the SEC has failed to provide the necessary technical assistance for the bill, which has raised concerns about its potential passage in Congress.

SEC’s Lack of Technical Assistance

According to multiple sources, the SEC has been unresponsive to requests for technical assistance for almost six weeks. This delay has become a significant obstacle in moving the bill forward. While the House has been actively seeking the SEC’s cooperation, it seems that the commission is dragging its feet.

In contrast, the Commodity Futures Trading Commission (CFTC) has been more receptive to providing technical assistance to congressional staff. The CFTC’s cooperation signifies a willingness to collaborate and contribute to the development of a comprehensive framework for cryptocurrency markets in the United States.

Final Draft of Crypto Market Bill

Various House committees have been collaborating for months to create a new bill to regulate crypto markets in the country. Led primarily by Republican members, this bill aims to guide U.S. market regulators on the proper classification of digital assets and their transition from securities to commodities.

The bill is expected to grant temporary additional power to the CFTC over crypto commodities markets, particularly Bitcoin trading. A final draft of the bill is set to be unveiled on July 20, 2023, in preparation for committee debates and voting the following week.

Originally, the Financial Services Committee planned to conduct a debate and amendment process for their part of the bill on July 19. However, this schedule has been adjusted to allow more time for committee members to review the draft thoroughly.

Senators’ Call for SEC Action

On July 19, two influential figures in the U.S. Senate voiced their concerns about the crypto industry and urged the Securities and Exchange Commission to take a more aggressive regulatory approach.

Senator Dick Durbin, a Democrat from Illinois, criticized crypto companies for spending billions on sports arena or stadium naming rights deals to gain credibility with everyday Americans. He also highlighted the manipulation of prices with tokens that lack underlying value.

Republican Senator John Kennedy from Louisiana questioned why the SEC did not issue an emergency injunction to halt the operations of the bankrupt FTX exchange before its collapse in November. In response, SEC Chairman Gary Gensler emphasized the need to investigate following proper procedures and the law.

While Gensler acknowledged the Senators’ claims about the crypto industry and the necessity for more regulatory policies, he emphasized the importance of the underlying blockchain technology. Furthermore, he took the opportunity to request additional funding for the SEC.

Crypto Total Market Cap

Source: TOTAL chart from TradingView

Despite the challenges and delays faced in regulating the crypto markets, it is clear that both Congress and regulatory bodies like the SEC and CFTC are actively engaged in developing a comprehensive framework. The ongoing discussions and debates demonstrate the recognition of the importance of addressing the unique characteristics and challenges presented by the blockchain industry.

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