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When it comes to crypto, Congress – especially members of the House of Representatives – appear to be split right down the middle. Some want strict laws in place, while others – such as various members of the democrat party – believe there are already sufficient statutes in place designed to keep the space stable and customers protected.
Whether You’re a Democrat or Republican, Crypto Regulation is Rough
One of those people is Stephen F. Lynch, a Massachusetts democrat. In an opening statement before the Digital Assets, Financial Technology, and Inclusion Subcommittee, Lynch said:
It seems unnecessary to reinvent the rules when we already have a regulatory regime that is, indeed, effective.
Agreeing with him is Maxine Waters, a democrat representative from California. She serves as the top democrat on the House Financial Services Committee. She said:
Despite what those across the aisle may say, we do not need to create an entirely new and special framework for crypto. We already have one.
Others, however, were quick to say otherwise. French Hill – a republican from Arkansas and the subcommittee chairman – commented that one of the biggest problems the crypto arena is constantly having to contend with is the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) constantly being at war with each other regarding who should “rule” over the industry.
So long as rules are not set in place designating which areas should be controlled or overseen by which federal agencies, things are always going to be hairy. He mentioned:
The SEC and the CFTC have created an impossible situation where the same firms are subject to competing enforcement actions by the two different agencies. Absent legislation, our regulators are only pushing entrepreneurs, developers and job creators offshore out of the U.S. system. We have a responsibility to protect our constituents. There are glaring gaps in consumer and investor protections, and regulation by enforcement does nothing to fill that gap.
House Financial Services Committee Chairman Patrick McHenry – a republican from the state of North Carolina – is concerned that overly strict regulation will push crypto exchanges and similar platforms out of America and cause them to set up shop on international land. He said:
If Congress doesn’t act, the rest of the world will.
Losing Companies?
The U.S. is already at risk of losing its main crypto exchange player Coinbase, which recently took out a business license to operate on the shores of Bermuda. The company is concerned about the country not getting it together when it comes to clear regulation.
The calls for crypto regulation have increased over the last six or seven months given the dire state of the industry in 2022 and the fateful collapse of FTX, which at one time, was considered one of the largest and most prominent trading platforms around.
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