The Financial Services Committee of the US House of Representatives date for the hearing on cryptocurrencies, with the aim of addressing their future and bringing clarity to the digital asset ecosystem. House Financial Services Speaker Patrick McHenry has officially announced that a full committee hearing will take place on Tuesday, June 13.
The hearing is titled “The Future of Digital Assets: Bringing Clarity to the Digital Assets Ecosystem,” reflecting its aim to shed light on the regulatory landscape and provide guidance for the evolving world of digital assets.
As part of its responsibilities, the Financial Services Commission oversees various aspects of the United States economy. This includes the supervision of individual Reserve Banks, the supervision of the Federal Reserve Board, the oversight of activities related to the United States Treasury, the regulation of capital markets, and the management of the production and distribution of currency.
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According to the committee’s announcement, the next session will be broadcast live on its official website. The announcement also coincides with the US Securities and Exchange Commission (SEC)’s intensified efforts to crack down on the cryptocurrency industry.
In quick succession, the regulator has filed two lawsuits against leading cryptocurrency exchanges, Binance and Coinbase.
Although the committee did not provide specific details about the agenda for the hearing, members of the cryptocurrency community eagerly anticipate that it will address some of the most critical issues in the industry.
SEC Commissioner Gensler is facing criticism from Republican lawmakers
With the rapid growth and evolving nature of the crypto space, there are many pressing matters that require attention, such as regulatory frameworks, investor protection, market stability, and innovation.
In a recent development, Republican lawmakers Patrick McHenry and Glenn Thompson have passed a bill aimed at creating a clearer regulatory framework for cryptocurrencies and exchanges.
The proposed bill proposes to allow trading of crypto assets on traditional trading platforms. Additionally, it seeks to introduce a division of power between the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) regarding oversight of cryptocurrency-related activities.
The discussion draft written by McHenry and Thompson is an attempt to address regulatory challenges and provide a more definitive blueprint for the crypto industry.
Last month, the US House of Representatives Financial Services Committee and the Committee on Agriculture held their first joint hearing on digital asset regulation.
During the hearing, lawmakers raised concerns about what they viewed as excessive regulatory measures being implemented by SEC Commissioner Gary Gensler. Criticism centered around the perception that the regulatory measures taken may have gone beyond what was necessary or appropriate for the digital asset industry.
The SEC’s vague cryptographic guidelines pose challenges
In response to recent lawsuits filed by the Securities and Exchange Commission (SEC) against Coinbase and Binance, pro-crypto Republican Senator Cynthia Loomis has expressed concerns about the lack of clear legal guidelines regarding the distinction between securities and commodities.
Loomis criticized the SEC for its reliance on regulation through enforcement, stating that it had a detrimental effect on investors. According to Lummis, the failure of the Securities and Exchange Commission (SEC) to provide adequate guidance on the matter has created uncertainty and hampered the growth of the cryptocurrency industry.
Featured image from PBS, charts from TradingView.com