The U.S. Securities and Exchange Commission (SEC) has reportedly withheld help needed in a congressional bill to regulate crypto markets. This is considered a potential hurdle if the bill is to pass in Congress.
Through multiple sources, the Block found it that the SEC has yet to provide sufficient technical assistance for the bill after nearly six weeks of filing. The report states that this appears to be the case despite the committee’s good communication with the House.
SEC officials recently provided staff briefings to Democratic members of the House Financial Services Committee. These briefings reportedly include their views on digital asset regulation in light of the committee’s upcoming consideration of bills to establish a comprehensive framework for cryptocurrency markets in the United States.
While the Securities and Exchange Commission appears to be dragging its feet on responding to the House’s request, the Commodity Futures Trading Commission (CFTC) would have been amenable thus far and provided some technical assistance to the congressional staff.
Final draft of crypto market law is revealed
Several House committees have been working together for months to bring about a new bill for crypto markets in the country. This crypto market bill, led primarily by Republican members, is expected to guide US market regulators on how to transition a digital asset from a security to a commodity.
In addition, it would temporarily give the Commodity Futures Trading Commission superior power over crypto commodity markets – primarily Bitcoin trading.
A final draft of this multi-committee bill is reportedly due today, July 20, 2023. This is pending a committee debate and vote next week.
Initially, a committee debate and amendment process for the Financial Services Committee’s bill was scheduled for Wednesday, July 19. However, this “markup” has been moved to the following week to allow sufficient time for additional review by committee members.
Senators urge SEC chairman to crack down on crypto companies
On Wednesday, July 19, two prominent figures in the US Senate criticized the crypto industry and urged the Securities and Exchange Commission to be more aggressive in its regulatory style.
Democrat Senator Dick Durbin D-III condemned the activities of crypto companies in the United States. The government official said:
They spent billions on sports arena or stadium naming deals to gain misplaced credibility with ordinary Americans and manipulate prices with counterfeit tokens with no underlying value.
Senator John Kennedy, a Republican from Louisiana, asked Gensler why there was “no emergency order to force the bankrupt FTX exchange to cease operations before it collapsed last November.”
The SEC chairman replied, saying:
We investigate by the book. You, I’m sure, and the American public, want us to follow the facts, follow the law, subpoena people properly.
While agreeing with the senators’ claims about the crypto industry and the need for more policy, Gensler argued for the underlying technology. Meanwhile, he took the opportunity to apply for more funding for his agency.
Crypto Total Market Cap at $1.16 trillion | Source: TOTAL chart from TradingView
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