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- 1 On Tuesday June 13th, the House Financial Services Committee gathered in Rayburn, Texas, to discuss the future of digital assets.
- 2 The main discussion was on token classification and two crypto bill proposals.
The Republican members pushed for more association from the Commodity Future Trading Commission (CFTC). Seeing this, Representative Maxine Waters said she had not expected such strong support for CFTC.
The committee held on June 13th was announced on June 6th. The motive was to achieve clarity in matters of digital assets. It included the regulations, classification, and bills related to crypto. The testimonies proposed by crypto enthusiasts and lawyers.
Republicans Showing Support for CFTC
Both the Security Exchange Commission (SEC) and CFTC play an important role in crypto regulation, says Coy Garrison, a partner at Steptoe and Johnson LLP. He added that further clarity is needed.
In the prepared testimony, he stated clarification is needed on whether digital assets are securities or not securities. The analytical complexity should be removed. This causes the distraction of any workable solutions for many legal and regulatory issues. He emphasized the Howey test is not always the right way to judge digital assets as securities.
Simultaneously, Rep. David Scott supported the existing security laws. He stated crypto companies and token issuers are sufficiently guided by SEC policies and laws, and condemned the discussion draft saying it will make the power flow in the wrong hands. He also added this bill is misguided with the abilities of SEC laws which will erode away the harm to American Investors.
Clarity on Securities Needed
Further, Scott says he is talking about the sections that give much authority over digital assets to the SEC and instead putting it at CFTC. The hearing started after Reps. Warren Davidson, R-Ohio, and House Majority Whip Tom Emmer, R-Minn, both members of the Financial Services Committee, have introduced the SEC Stabilization Act.
The bill also proposes Gary Gensler should be removed from the position as Chairperson of the SEC as he is unable to clarify certain queries like whether ether is a security or not.
The proposal continued further that instead, Gary should be appointed as the Executive Director of the overseas. Currently, there are five commissioners in the SEC, including Gensler. It is proposed the sixth SEC commissioner should be added.
Davidson, after stating the proposal, said there are many innovations happening in the country. He hopes to implement some innovations in the SEC, and the amendments and clarification in the laws for digital currency.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
