Senior members of the US House of Representatives from the Republican party have conveyed their apprehension regarding the regulatory approach of the US Securities Exchange Commission (SEC) towards cryptocurrencies. In a letter addressed to Gary Gensler, the chair of the financial regulator, Representatives French Hill of Arkansas and Dusty Johnson of South Dakota asserted that the SEC’s handling of crypto regulation appears to be motivated by a desire for publicity and political impact, rather than a balanced and thoughtful approach.
The representatives expressed concerns that the SEC’s actions are impeding the progress of comprehensive legislation being developed by Congress to address regulatory gaps in the cryptocurrency space. They pointed out that while lawmakers are diligently working towards closing these gaps, the SEC has chosen a path of regulation through enforcement, which, in their view, hinders the legislative efforts.
The letter was sent on Wednesday to raise awareness of the issue and seek a more collaborative and effective approach to regulate the crypto industry in the United States.
SEC’s Approach Does Not Protect Public: Congressmen
“Financial Services Committee Republicans have sent numerous letters to the SEC expressing concern with several proposed rulemakings and staff actions. This approach does not result in compliance and customer protection, but instead creates further confusion, as demonstrated by the recent summary judgement” the Congressmen said in the letter referring to the recent court ruling in Ripple’s case against the SEC.
Seemingly referring to the timing of SEC’s lawsuits against Binance and Coinbase last month, lawmakers wrote, SEC’s certain actions were timed to coincide with Congressional activity, which appears calculated for maximum publicity and political impact.
As per the Congressmen, legislation would do far more to prevent future collapses of crypto firms than enforcement actions.
As previously reported, there is optimism among two senior members of the Financial Services Committee in the U.S. House of Representatives regarding the proposed bill to regulate cryptocurrencies and stablecoins. They are hopeful that the bill will eventually become legislation.
French Hill, one of the representatives involved in drafting the bill, recently stated that they aim to create a clear and efficient pathway for stablecoin regulations at the state level.
Representative Jim Himes, a senior Democrat on the Financial Services Committee, also acknowledged the ongoing debate between state and federal policies concerning stablecoin regulations. However, he expressed confidence that this debate will not be a major obstacle in preventing the proposed bill from becoming law.
Both representatives are optimistic about the progress of comprehensive regulatory frameworks for stablecoins and crypto markets in the United States, and they anticipate significant advancements by the end of July.
The committee has scheduled the vote and debate on the proposed crypto bill for July 26, as per a note sent to committee offices. This indicates that the legislative process is moving forward, and the bill’s fate will soon be determined through committee discussions and voting.
