Crypto Bill Set for US House Vote, Aims to Define SEC and CFTC Jurisdiction

The US House Financial Services Committee is gearing up for a vote on a comprehensive digital asset bill in the coming weeks. The bill aims to establish a clear regulatory framework for the crypto industry, providing rules and guidelines for market participants. The decision follows a recent committee hearing focused on addressing the market structure of digital assets and the regulation of payment stablecoins.

Chairman Patrick McHenry, a Republican member of the committee, has expressed his intention to hold a vote on the legislation once lawmakers return from the July 4 recess. The proposed bill seeks to bring clarity to the crypto industry by granting both the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) jurisdiction over separate areas of the crypto landscape.

Crypto firms have been vouching for clear crypto regulations

Crypto firms have been seeking regulatory clarity from the US Congress, as the SEC’s regulatory approach has primarily relied on enforcement actions, asserting that most crypto assets fall under the securities category. The lack of clear guidelines has prompted confusion and uncertainty among crypto exchanges and companies, leading to calls for more definitive regulations.

The House Financial Services Committee acknowledges the shortcomings of the SEC’s approach, with Chair Gary Gensler at the center of the criticism. Democrat Ranking Member Maxine Waters has expressed concerns about provisional registration for crypto exchanges, citing potential risks associated with enabling bad actors. Senators Sherrod Brown and Elizabeth Warren have also expressed skepticism about the crypto asset market.

The SEC’s recent enforcement actions, particularly the lawsuits against Binance and Coinbase, have raised questions among industry insiders. Many believe that these actions are not solely aimed at investor protection but also serve to establish the SEC’s jurisdiction over the broader crypto industry.

In a separate development, a US District Court judge has ordered Binance.US and the SEC to work toward a compromise agreement. The judge emphasized the potential impact on investors if assets were to be frozen, signaling the need for a balanced resolution to the ongoing legal dispute.