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- The U.S. HFSC and HAC are putting together legislation to oversee crypto.
- A Senator says that this issue must be addressed before the 2024 elections.
The United States House of Financial Services Committee (HFSC) and the House Agricultural Committee (HAC) are putting together legislation that would supervise the crypto sector. After months of obscurity, U.S. Lawmakers might come up with clear crypto regulations in six to eight weeks, after the joint public hearing starting in May 2023. States Rep. Partick McHenry (R-N.C.) HFSC chair.
Could the Bipartisan Crypto Bill Clear the Obscurity?
Representatives were speaking at Consensus 2023 event. McHenry was asked if there is a possibility that the bill would be signed by President Joe Biden, and he said “Yes.” The proposed bill will be addressing the spectrums of securities and commodities market, along with the prevailing issues.
Senator Cynthia Lummis (R- Wyo), also known as the Senates Crypto Queen, was also among the panelists and said that she is looking forward to coordinating efforts with McHenry. She further argued that the House has a better chance than the Senate at getting the legislation, providing the first mover advantage in this scenario. If the House moves first, the chances in the Senate would improve dramatically.
Lummis also said that “This is a bipartisan subject we need to address before the 2024 election.”
There have been multiple bills to date making their way to Capitol Hill, but the United States Congress is yet to provide comprehensive legislation for the crypto industry.
In April 2023, the Republicans on the HFSC worked towards finding bipartisan support for a second effort at making stablecoin legislation. But It is still not clear if the support will be granted or not. Republicans also introduced a discussion draft, which marks a new starting point for the negotiations with the Democrats.
Back in 2022, Lummis introduced a bipartisan “Responsible Financial Innovation Act.” This was aimed at creating a regulatory framework for the industry, made in collaboration with Sen. Kirsten Gillibrand (D-N.Y.). Speaking to the crowd at Consensus 2023, the Crypto Queen said that the new and improved version of the bill will be unveiled in six to eight weeks’ time. The bill will have a stronger emphasis on national security and cybercrime aspects.
On April 27, 2023, Sen Kirsten Gillibrand and Ted Budd, along with Congressmen Zach Nunn and Jim Himes reintroduced a bipartisan bill, aimed at studying the usage of cryptocurrency for illegal activities like drug trafficking, terror funding, and money laundering. Also, providing steps to counter such usage.
Interestingly, last week the US Securities and Exchange Commission (SEC) chair Gary Gensler was probed by the McHenry’s Committee where he refused to clarify his stand on whether Ethereum should be called a security or not.
Lummmis said that Congress is supposed to provide adequate guidance and could use the Howey Test in the most modern way possible and expressed by the U.S. Courts. Even though the deadlock in Congress between Democrats and Republicans continues, lawmakers must soon come up with legislation for the industry. As it would be unwise to wait after incidents like the FTX saga and recent collapses of crypto-friendly banks.
Meanwhile, major jurisdictions like the European Union have approved the Markets in Crypto Assets (MiCA) laws. Regulators in Japan and the United Arab Emirates are also working towards regulating the industry. Also, Hong Kong and the United Kingdom are re-calibrating their approach towards crypto.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
