Joint hearing ahead of US crypto regulation plans in May 2023
The House Financial Services Committee chair confirmed that the upcoming joint hearing will address the regulation system & ensure the safety of crypto investors.
Crypto regulation under American jurisdiction is unclear. The United States Securities and Exchange Commission (SEC) is the dominant financial regulatory body, responsible for regulating the securities assets market and also the crypto market. After the SEC, the CFTC agency is known as the top regulatory body in the crypto sector. Both of these two agencies regulate the crypto sector under a traditional regulation system, which was designed around 80 years ago.
On 27 April 2023, A joint announcement came from Congressman McHenry, Glenn Thompson, Chairman of the House Agriculture Committee, French Hill, Chairman of the Digital Assets, Financial Technology, and Inclusion Subcommittee, and the Chairman of the Commodity Markets, Digital Assets, and Rural Development Subcommittee, Dusty Johnson.
The announcement confirmed that several hearings will take place in the next month and discussions will mainly target bringing a clear crypto regulation system for the crypto sector and also ensure the safety of investors with the surety of crypto & blockchain innovations.
On 28 April, McHenry spoke about these hearings during the panel alongside crypto-friendly Senator Cynthia Lummis during the 2023 Consensus event. He said that it will be the first time that joint committees will talk about crypto regulation.
According to McHenry, all the committees are planning to bring a report on behalf of the hearing, so that a proper framework can easily categorize the crypto assets under Security & Commodity class.
In June 2022, the Lummis-Gillibrand bill was already introduced by Crypto-friendly US Senator Cynthia Lummis. Now the new crypto regulation proposal will be introduced in that proposed bill.
Lummis-Gillibrand bill includes measures to regulate crypto assets, crypto companies, stablecoin regulation, tax system, and power in the hand of CFTC & SEC agency to interfere in crypto regulation with proper clarity.
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