The cryptocurrency industry has grown significantly in recent years, but with that growth comes the need for regulation to protect investors and prevent illegal activity. The US House Financial Services Committee and House Agriculture Committee are now preparing to introduce comprehensive legislation to oversee the cryptocurrency sector in the next two months.
The joint public hearing between the two committees is scheduled to start in May, before unveiling the new bill. Representative Patrick McHenry, chair of the House Financial Services Committee, has claimed that the bill could be signed by President Joe Biden within the next 12 months. The proposed legislation aims to address securities and commodities regimes as well as hard-to-fix issues, and it aims to be addressed before the 2024 election.
Despite several bills making progress on Capitol Hill last year, the US Congress has been unable to pass comprehensive legislation on crypto. However, the recent collapse of FTX and other high-profile digital asset firms has put pressure on lawmakers to introduce legislation that provides adequate guidance and protections for the industry.
The Commodity Futures Trading Commission and the Securities and Exchange Commission, two of the biggest financial regulators in the US, have launched an aggressive crackdown on the crypto industry. The CFTC has sued Binance and its founder Changpeng “CZ” Zhao on allegations that the crypto exchange knowingly offered unregistered crypto derivative products in the US in the transgression of the law. Similarly, the SEC has sent a “Wells notice” to Coinbase, threatening the crypto exchange with legal actions regarding some of its listed digital assets, its staking service Coinbase Earn, Coinbase Prime, and Coinbase Wallet.
The cryptocurrency industry is in need of regulation to protect investors and prevent illegal activity. The US House Financial Services Committee and House Agriculture Committee’s proposed legislation aims to address securities and commodities regimes as well as hard-to-fix issues in the cryptocurrency industry. The legislation aims to be addressed before the 2024 election, and if passed, could be signed by President Joe Biden within the next 12 months. The recent collapse of FTX and other high-profile digital asset firms has put pressure on lawmakers to introduce legislation that provides adequate guidance and protections for the industry.
