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US regulatory bodies, known as watchdogs, have expressed opposition to the proposed draft bill by the US House Financial Services Committee concerning the structure of the crypto market.
US Watchdogs Oppose Proposed Crypto Market Structure Bill
A coalition of US-based industry watchdogs has united in opposition to the proposed draft bill by the US House Financial Services Committee regarding the crypto market structure. The bill aimed to establish a regulatory framework for the crypto industry in the United States, providing clear rules and guidelines. Committee Chair Patrick McHenry had planned to hold a committee vote on the draft bill in July 2023.
The focus of the bill centers around the role of the US Securities and Exchange Commission (SEC) in overseeing the regulatory framework.
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Watchdogs Oppose US Crypto Bill, Cite Lack of Viable Use Cases
Several organizations, including Americans for Financial Reform and Center for Responsible Lending, sent a detailed letter to the US House Committee on Financial Services expressing their opposition to the draft proposal, known as the ‘Digital Asset Market Structure Discussion Draft.’ The watchdogs alleged that stakeholders in the crypto industry had lobbied for the bill, but failed to demonstrate practical use cases beyond speculative investment. Additionally, they accused the crypto market of pushing for favorable legislation while operating in the shadow of crypto innovation.
A notable concern surrounding the proposed bill is its potential impact on the Securities and Exchange Commission (SEC) and its evaluation of regulatory rulemakings. The bill calls for the agency to assess new rules using “innovation” as a criterion, which is deemed by critics as potentially detrimental. This aspect of the bill has drawn significant scrutiny due to its potential to alter the #SEC’s rule evaluation process for all securities markets.
In contrast to the prevailing public sentiment, watchdog organizations have expressed their support for the ongoing enforcement actions by the Securities and Exchange Commission (SEC) in order to safeguard consumers. However, while the US remains cautious, various jurisdictions in Europe and Asia are actively striving to create regulatory frameworks that accommodate crypto businesses relocating from the United States.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
