Congress is urging the U.S. Securities and Exchange Commission (SEC) to establish clear and efficient rules for the cryptocurrency industry amid the latest buzz in XRP. The SEC recently secured a partial victory in the XRP lawsuit summary judgment, further emphasizing the need for well-defined guidelines in the digital asset space.
SEC Faces Pressure to Regulate Crypto
U.S. Congressman French Hill and Rep. Dusty Johnson penned a letter to SEC Chair Gary Gensler, highlighting the importance of productive rules formation in the crypto industry. They emphasized the need for a clear regulatory framework that benefits all market participants, making it a priority for the House Committee on Financial Services and the House Committee on Agriculture.
Over the past four years, these committees have conducted over 15 hearings on digital asset policy to address regulatory gaps. While Congress is actively working to tackle these issues, the SEC has primarily focused on regulating the market through enforcement actions. Congress seeks collaboration with the SEC to promote innovation and market growth.
The pressure on the SEC Chair is intensifying, with Fox Business Journalist Eleanor Terrett reporting that two recent letters were sent to urge a change in the Commission’s approach to crypto regulation through enforcement. Rep. Ritchie Torres also voiced similar concerns to Gary Gensler. The aim is to bring an end to the current enforcement-focused strategy.
SEC and Congress to Cooperate on Crypto Regulation
Following the XRP lawsuit ruling, the U.S. House Committee on Financial Services Republicans stressed the need for the SEC chair to collaborate with Congress in safeguarding digital asset users. This underscores the increasing interest in setting transparent rules and protections for the cryptocurrency industry.
There is a divergence of views between Congress and the SEC regarding crypto regulation. While Congress is actively working to address regulatory gaps, the SEC is leaning towards a stricter enforcement approach, attempting to control crypto intermediaries through rulemaking and staff actions. This conflicting approach may lead to a clash of visions in the crypto arena, and only time will reveal the outcome.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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