In the face of increasing regulatory scrutiny, crypto companies in the US are making a renewed push for legislation that provides regulatory clarity for the industry. This article discusses the role of crypto lobbyists, the SEC’s jurisdiction, the draft bill, and the challenges faced by the industry.
The Role of Crypto Lobbyists
Crypto lobbyists, including the Blockchain Association, Chamber of Digital Commerce, Crypto Council for Innovation, and Coinbase Global, are making efforts to build bipartisan support for a draft bill. Their focus is on educating Congress about the industry and its potential benefits. For more in-depth discussions on these topics, visit our news section.
SEC’s Jurisdiction and Crypto Companies’ Disputes
The SEC has steadily asserted its authority over the industry, arguing that most cryptocurrencies are securities. However, many crypto companies dispute this, arguing that cryptocurrencies are more like commodities. The need for Congress to define when a cryptocurrency is a security or a commodity is becoming increasingly important. For more information on US regulations, visit the US Government’s regulation page.
The Discussion Draft Bill
The draft bill by the Republican chairs of the House Financial Services and Agriculture committees aims to define when a cryptocurrency is a security or a commodity. It proposes to expand the Commodity Futures Trading Commission’s oversight of the crypto industry, while clarifying the SEC’s jurisdiction.
Skepticism and Challenges
Despite the efforts of crypto lobbyists, there is skepticism among Democrats about the bill. The collapse of major players like FTX has raised concerns about the industry. However, lobbyists believe that other Democrats on the committees could be persuaded that the bill would help protect American innovation and jobs.
Rebuilding Industry Credibility
The indictment of FTX’s founder, Sam Bankman-Fried, has hurt the crypto industry’s credibility. Lobbying and grassroots campaigns are underway to repair the damage and emphasize the importance of protecting American innovation and jobs.
The proposed legislation has potential implications for the crypto industry. Ongoing advocacy efforts are crucial for the industry to gain regulatory clarity.
For more information check out the official sources:
U.S. Securities and Exchange Commission (SEC) – The official website of the SEC which provides news, legal and other releases, and reports, about securities, markets, and the commission itself.
Commodity Futures Trading Commission (CFTC) – The government agency that regulates the U.S. derivatives markets, including futures, swaps, and certain kinds of options.
U.S. House Committee on Financial Services – The official website of the House Committee on Financial Services.
