In a short note published this Tuesday (6), the chairman of the US Financial Services Committee has scheduled a meeting to discuss the future of cryptocurrencies.
Entitled “The Future of Digital Assets: Bringing Clarity to the Digital Asset Ecosystem”the hearing is scheduled for the afternoon of next Tuesday (13).
“President Patrick McHenry announces a hearing on the future of the digital asset ecosystem and Congressional efforts to provide clear rules.”
#NEW: Chair @PatrickMcHenry announces a hearing on the future of the digital asset ecosystem and Congress’ efforts to provide clear road rules.
Read more 🔗https://t.co/HwaPWBjJqG
— Financial Services GOP (@FinancialCmte) June 6, 2023
The US Congress is trying to modernize its laws
The week was turbulent in the cryptocurrency market. After all, the US CVM sued the two largest brokers in the industry, Binance and Coinbase, causing price stress.
However, it is worth noting that the SEC only deals with securities. That is, only a few cryptocurrencies were mentioned in the lawsuits.
The Financial Services Committee has more powers and therefore can fill regulatory gaps that agencies such as the SEC and CFTC have no control over.
“This discussion draft is the first step toward delivering on Republicans’ commitment to developing clear rules for the digital asset ecosystem.”
“Our goal is to find the right balance between protecting consumers and stimulating responsible innovation”continued Patrick McHenry. “This is the product of an unprecedented collective effort […] which gives us a better chance of finding that balance.”
The 162-page document, which will be used as the basis for the discussion, covers issues such as the role and modernization of regulatory bodies, as well as the proper categorization of each cryptocurrency.
In addition, the text also focuses on brokers and custodians, and aims to understand the new aspects of the crypto sector, such as NFTs and DeFi (decentralized finance).
More regulations on the horizon?
Apparently, the text seeks to provide more regulatory clarity on cryptocurrencies in the US, something the industry itself has been asking for, which today lives without direct answers.
On the other hand, we can also expect a bigger reprimand on certain cryptocurrencies. Taking the SEC processes as an example, it is possible that more projects are classified as securities. Therefore, they may lose market.
Ultimately, this should benefit truly decentralized cryptocurrencies like Bitcoin, and could result in the approval of a highly anticipated BTC spot ETF.
However, others argue that Bitcoin is just the next target for regulators. One of the biggest examples is the founder of Cardano, cryptocurrency that was cited as a security by the SEC this week.
“And they don’t understand that they are next”noted Charles Hoskinson this Wednesday (7), referring to Bitcoin maximalists celebrating the pressure on Proof-of-Stake projects.
And they don’t understand that they are next.
— Charles Hoskinson (@IOHK_Charles) June 7, 2023
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
