• Split views among members of the US House of Representatives on crypto regulation, with some looking for stricter laws and others believing existing statutes are sufficient.
• French Hill, chairman of the Digital Assets, Financial Technology and Inclusion Subcommittee, noted that regulators SEC and CFTC are in conflict over who should oversee the space.
• Patrick McHenry expressed fears that overly strict laws may push crypto exchanges out of America.
Split Views on Crypto Regulation
Lawmakers from both Democrat and Republican parties in the US House of Representatives appear to be divided when it comes to crypto regulation. While some want stricter laws in place, others like Stephen F. Lynch (a Massachusetts democrat) believe there’s already a regulatory regime in effect that’s effective enough. California Democrat Maxine Waters also believes that creating an entirely new framework for crypto is unnecessary since one already exists.
Conflict Between Regulators
French Hill – a Republican from Arkansas and chairman of the Digital Assets, Financial Technology and Inclusion Subcommittee – highlighted one major problem within the industry: ongoing tension between the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC). Without defined rules designating which federal agencies should oversee or control certain areas, things remain uncertain.
Protecting Constituents
Hill went on to say that absent legislation, regulators are only driving entrepreneurs away from the US system which could have damaging consequences for constituents‘ interests. He stressed that consumer and investor protection gaps need to be filled instead of relying solely on enforcement action alone.
McHenry’s Concerns
House Financial Services Committee Chairman Patrick McHenry (a North Carolina Republican) is worried that overly strict regulations will encourage cryptocurrency exchanges to relocate outside America. He argued this would not benefit anyone involved as it would take away job creators from US citizens while simultaneously leaving them unprotected against frauds or scams associated with such platforms.
Conclusion
It remains unclear how Congress will decide to move forward with regards to crypto regulation but it certainly appears there is strong divide among its members regarding whether stricter laws should be implemented or existing ones are sufficient already