The US may be on the verge of having new crypto regulations.
The Agricultural Committee of the United States House of Representatives found itself in the spotlight during a June 6th hearing dedicated to the regulation of digital assets.
This was no ordinary committee meeting, as the current and former high-ranking officials of the Commodity Futures Trading Commission (CFTC) and Coinbase's Chief Legal Officer, Paul Grewal, graced the occasion.
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The extended hearing, during which CFTC chair Rostin Behnam spoke and responded to inquiries for more than two hours, primarily revolved around the proposed digital asset regulation bill authored by Committee Chair Glenn Thompson and House Financial Services Committee Chair Patrick McHenry. Thompson envisions the legislation as a bipartisan joint committee endeavor.
The bill intends to bridge the existing regulatory gaps, particularly in the spot market for digital assets not classified as securities.
The proposed legislation by Thompson and McHenry would revamp the definition of securities and commodities based on how the asset is traded and the level of decentralization. The bill also includes new descriptions for digital commodity brokers and dealers without tampering with the fundamental aspects of market structure.
Behnam highlighted that these regulatory changes would influence approximately 60% of the digital assets market, which predominantly consists of Bitcoin (BTC) and Ether (ETH).
The provision in the bill that expands the CFTC's jurisdiction to cover the regulatory gaps in digital asset regulation could significantly increase the agency's responsibilities, raising concerns over funding.
During the hearing, the Democratic committee members voiced their concerns, claiming that the 162-page bill is exceptionally complex and lacks information about the funding mechanism.
Glenn Thompson stressed that the bill is still in draft form, but he believes it is crucial to introduce regulations and provide clarity in the industry.
It is worth noting that the hearing occurred on the same day as US Securities and Exchange Commission filed a lawsuit against crypto exchange Coinbase. Regarding the matter, Congressman Thompson stated "This action is exactly why we are holding our hearing hear today."
As we move forward, the outcome of these discussions will greatly influence the future of digital asset regulation. The question that lingers now is whether a consensus will be reached on how to fund these necessary regulatory efforts.
