Crypto bill from Republicans to define roles of SEC, CFTC
Republican Lawmakers Release Draft Bill for Clearer Crypto Regulations
Republican lawmakers have released a draft bill that could introduce a clearer regulatory plan for crypto assets and exchanges. The proposal would allow digital assets to be traded on more conventional platforms, with a division of authority between the top two financial regulators in the US. The Commodity Futures Trading Commission would be granted explicit spot market authority over crypto commodities under existing law, while the Securities and Exchange Commission would regulate digital-asset securities. The proposed bill would also prohibit the SEC from preventing an alternative trading system from listing crypto securities and would require the SEC to modify its rules to allow broker-dealers to custody digital assets. The draft bill offers a clearer pathway for the registered offer and sale of digital assets.
Co-authored by Reps. Patrick McHenry, R-N.C., and Glenn Thompson, R-Pa., the discussion draft could address the lack of regulation, which has left companies and developers scrambling to move operations beyond the US following a number of enforcement actions. Coinbase and Gemini have already announced off-shore exchange operations, while undergoing scrutiny from the SEC over potential securities charges.
The draft bill may be reshaped and modified in the coming weeks and months.
FAQs:
What was included in the Republican’s draft bill on crypto regulations?
The proposed bill included a clearer pathway for the registered offer and sale of digital assets, a division of authority between the top two financial regulators, and granting explicit market authority over crypto commodities to the Commodity Futures Trading Commission.
What has the SEC done in regards to American crypto entities?
The SEC has based several enforcement actions against American crypto entities including Gemini, Genesis, and Kraken by arguing that the companies engaged in the unregistered offer and sale of securities.
What is the purpose of the proposed bill?
The proposed bill aims to offer a clearer regulatory plan for crypto assets and exchanges, allowing digital assets to be traded on more conventional platforms. It also requires the SEC to modify its rules to allow broker-dealers to custody digital assets and offers a pathway for the registered offer and sale of digital assets.
Who co-authored the discussion draft released by Republican lawmakers?
Reps. Patrick McHenry, R-N.C., and Glenn Thompson, R-Pa. co-authored the discussion draft.
Republicans’ Crypto Bill to Establish SEC and CFTC Responsibilities
Republican lawmakers have introduced a draft bill that could bring clarity to the regulatory landscape for cryptocurrencies and crypto exchanges. The legislation, which was authored by Reps. Patrick McHenry of North Carolina and Glenn Thompson of Pennsylvania, would establish a division of authority between the Commodity Futures Trading Commission and the Securities and Exchange Commission. Under the proposed bill, the CFTC would have spot market authority over crypto commodities and the SEC would regulate digital-asset securities. The bill could pave the way for ATS platforms to list crypto securities and require broker-dealers to custody digital assets. The proposed legislation also includes a carve-out for DeFi assets, which would be exempt from registering as securities if they are SEC-certified. The McHenry-Thompson bill is seen as a significant move to provide long-sought clarity for crypto exchanges currently battling enforcement actions brought by the SEC.