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Representatives from crypto companies, Coinbase and Robinhood, and the US commodities regulating agency, CFTC, are likely to testify before Congress. The testimony would be on Tuesday, June 6 and on the cryptocurrency bill released last week.
Sometime back, Chief Legal Officer at Coinbase, Paul Grewal, tweeted regarding his confirmation of testimony. He added the summary of his testimony that he was going to present before the House Committee on Agriculture on Capitol Hill. The subject needed the attestation on the draft of “clear crypto rules and the Digital Asset Market Structure Discussion.”
Tomorrow I will be testifying on Capitol Hill before the House Committee on Agriculture on the need for clear crypto rules and the Digital Asset Market Structure Discussion Draft. Read a summary of my testimony here/below:https://t.co/V4vTo0OT6L
— paulgrewal.eth (@iampaulgrewal) June 5, 2023
Along with the biggest crypto exchange in the United States, Coinbase, the commission-free trading platform, Robinhood, and representatives from Commodity Futures Trade Commission reported to join the testimony. It includes former CFTC Chairman, Chris Giancarlo and former CFTC Commissioner, Dan Berkvitz. The founder of Futures, Options and Derivatives Global Trade Organization FIAconnect, Walt Lukken, is also said to be called for testimony.
The aforementioned people would be sharing their opinions on behalf of their respective organizations and entities. They will clear the stance on the bill proposed last week which focuses on different subjects including classification of certain cryptocurrencies as digital commodities.
On June 2, the United States House Financial Services Committee and House Agriculture Committee released a draft bill. The draft notes the proposal of labeling certain cryptocurrencies as digital commodities.
The discussion draft suggested the proposal established a framework which is functional and intends to provide clarity to crypto companies within the United States regarding the regulations.
About the regulatory enforcements of the US Securities and Exchange Commission (SEC), the bill has provisions restricting the agency from denying the crypto trading platforms to register themselves as a regulated entity involved in the alternative trading system. It also goes on to allow these crypto firms for offering the “digital commodities” and stablecoin payments.
The broader crypto community had concerns regarding the uncertainty and vagueness of crypto regulations within the United States. Coinbase is among those entities, who are consistently called for clarity on regulations. The summary of Grewal’s testimony also reflects a similar stance.
In the Twitter thread, Grewal noted the United States lagging behind for regulations which cannot be afforded, given the other countries in the world taking advantage of it. Other countries are developing rules and regulations around crypto to help the industry get nurtured there. No wonder, it results in increasing investments and allows the country to lead in the terms of tech development.
The US is falling behind. We cannot afford to ignore crypto while other markets take advantage of our absence, developing rules and regulations that enable the industry to thrive and risk sending jobs, investment, and technological leadership overseas.
— paulgrewal.eth (@iampaulgrewal) June 5, 2023
While reiterating the demand for clarity on crypto regulations, the Coinbase legal officer noted that a “clear rulebook in the U.S.” is needed in order to achieve the crypto promises.
“Until rules and laws are developed that reflect the realities of this new economic system, we cannot realize the full potential of making our financial system faster, fairer, and more affordable.”
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
