- Rep. Patrick McHenry (Republican) and Rep. Glenn Thompson (R-Pennsylvania) introduced a bill that proposes to draw a clearer line of authority between the SEC and the CFTC on cryptocurrency matters.
- This will provide a path to registration and expressly allow cryptocurrencies to be traded on alternative trading systems under the jurisdiction of the SEC.
- The CFTC will oversee the cryptocurrency spot commodity market under current law.
Rep. Patrick McHenry, Republican of North Carolina and influential member of the House Financial Services Committee, speaks at a hearing in Washington, D.C.
Andrew Haller Bloomberg | Getty Images
Republican lawmakers on Friday will provide a clearer regulatory plan for crypto assets and exchanges, allowing digital assets to be traded on more traditional trading platforms and introducing a division of power between the top two financial regulators in the US. published a draft bill.
The discussion draft was co-authored by Rep. Patrick McHenry (R-Pennsylvania R-P) and Glenn Thompson (R-Pennsylvania R-P) and co-authored, and under current law, gives the Commodity Futures Trading Commission a call to action against cryptocurrency products. It is a content that grants explicit spot market authority.
The Securities and Exchange Commission will regulate digital asset securities.
The bill would “prohibit” the SEC from blocking the listing of cryptocurrencies through alternative trading systems (ATSs), according to officials, and tell the SEC to “amend rules to allow broker-dealers to store digital assets.” It is said that it is something that demands. draft summary.
The bill proposes a clearer pathway for registered offers and sales of digital assets. The SEC has taken several enforcement actions against U.S. cryptocurrency entities, including Gemini, Genesis, and Kraken, alleging companies involved in the offering and sale of unregistered securities.
A major carve-out of DeFi (decentralized finance) assets will exempt SEC-certified assets from registration as securities.
Cryptocurrency exchanges are seeking regulatory clarity following massive law enforcement action, and companies and developers are scrambling to do business outside the United States. Cryptocurrency exchanges Coinbase and Gemini have both announced the operation of offshore exchanges.
Coinbase has also been battling it out in court with the SEC over the very issue that apparently inspired the McHenry-Thompson bill. The cryptocurrency exchange received a Wells Notice from the SEC earlier this year warning of impending enforcement action.
The bill is likely to be reconstituted and amended in the coming weeks and months, but it represents strong support from two influential Republican lawmakers.
