Legislators in the United States may be moving toward new crypto regulations.
In the impending Congressional hearing scheduled for June 6th, significant players from the crypto world, including Coinbase and Robinhood, along with US commodities regulatory representatives, will reflect on a newly proposed crypto bill.
The crypto bill could potentially categorize select crypto tokens as digital commodities. This critical meeting will facilitate each firm, or agency, to elucidate their perspective on this groundbreaking legislation.
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In a Twitter thread dated June 5th, Grewal outlined the primary focus of his forthcoming testimony. In this context, Coinbase's Chief Legal Officer, Paul Grewal, stated:
Tomorrow I have the honor of testifying on Capitol Hill before the House Committee on Agriculture to share Coinbase’s views on the Digital Asset Market Structure Discussion Draft <...> released last week.
He pointed out the slow pace of the US in crypto regulation, stressing the opportunity cost and the risk of losing jobs, investment, and technological leadership to overseas markets. He emphasized:
We need a clear rulebook in the US to achieve the full promise of crypto. Until rules and laws are developed that reflect the realities of this new economic system, we cannot realize the full potential of making our financial system faster, fairer, and more affordable.
Grewal also expressed his endorsement for the proposed crypto bill, labeling it “a strong step forward in providing overdue regulatory clarity.”
In addition to the representatives from Coinbase and Robinhood, the hearing will witness testimonials from notable figures like former CFTC chair Chris Giancarlo, former CFTC commissioner Dan Berkvitz, and FIAconnect founder Walt Lukken.
The Digital Asset Market Structure Discussion Draft, released on June 2nd, is part of the initiative by Republican congressmen Patrick McHenry and Glenn Thompson. They aim to provide a “statutory framework for digital asset regulation intended to provide clarity, fill regulatory gaps, and foster innovation while providing adequate consumer protections.”
This development falls in line with Coinbase's sustained efforts for comprehensive regulatory guidelines for the crypto sector. Interestingly, the hearing takes place just a day after a rival crypto exchange, Binance, faced 13 charges by the US SEC.
The scheduled Congressional hearing is a significant event that brings together major stakeholders in the crypto domain and regulators. Their discussions around the proposed bill may pave the way for the future of digital asset regulation in the United States.
