The United States Securities and Exchange Commission (SEC) has allegedly held up assistance needed in a congressional bill to regulate the crypto markets. This has been considered a potential hurdle if the bill is to pass in Congress.
Through multiple sources, the Block found that the SEC has yet to provide sufficient technical assistance for the bill after almost six weeks of request. The report stated that this appears to be the case despite the supposed commission’s good communication with the House.
SEC officials have recently provided briefings to the staff of Democratic members of the House Financial Services Committee. These briefings reportedly covered their opinions on digital asset regulation in light of the committee’s upcoming consideration of bills to establish a comprehensive framework for cryptocurrency markets in the United States.
While the Securities and Exchange Commission seems to be dragging its feet in responding to the House’s request, the Commodity Futures Trading Commission (CFTC) is said to have been receptive so far, providing the congressional staff with some technical assistance.
Final Draft Of Crypto Market Bill To Be Unveiled
Various House committees have been working together for months to create a new bill for crypto markets in the country. This crypto market bill, led primarily by Republican members, is expected to direct the U.S. market regulators on how a digital asset can transition from a security to a commodity.
Additionally, it would temporarily confer the Commodity Futures Trading Commission superior power over crypto commodities markets – mainly Bitcoin trading.
A final draft of this multi-committee bill will reportedly be introduced today, July 20, 2023. This is in anticipation of a committee debate and vote next week.
Initially, a committee debate and amendment process for the Financial Services Committee part of the bill was scheduled on Wednesday, July 19. However, this “markup” has been rescheduled to the following week to allow enough time for additional review by committee members.
Senators Urge SEC Chairman To Crack Down On Crypto Companies
On Wednesday, July 19, two prominent figures in the U.S. Senate criticized the crypto industry, pressing the Securities and Exchange Commission to be more aggressive in its regulatory style.
Democrat Senator Dick Durbin D-III condemned the activities of crypto companies in the United States. The government official said:
They spent billions on sports arena or stadium naming rights deals to gain misguided credibility with everyday Americans and manipulate prices with phony tokens of no underlying value.
Senator John Kennedy, a Republican from Louisiana, asked Gensler why there was “no emergency injunction to force the bankrupt FTX exchange to halt its operations before collapsing last November.”
The SEC chairman responded, saying:
We investigate by the book. You, I’m sure, and the American public, want us to follow the facts, follow the law, properly get people subpoenas.
Although Gensler agreed with the Senators’ claims about the crypto industry and the need for more policies, he made a case for the underlying technology. Meanwhile, he took the opportunity to request more funding for his agency.
Crypto Total Market Cap at $1.16 trillion | Source: TOTAL chart from TradingView