SEC Allegedly Delays Aid to U.S. Cryptocurrency Market Act

The U.S. Securities and Exchange Commission (SEC) has allegedly suspended aid needed for a congressional bill regulating the cryptocurrency market. That was seen as a potential hurdle if the bill were to pass through Congress.

Through multiple sources, Block found that the SEC had not provided sufficient technical assistance for the bill nearly six weeks after making the request. The report notes that this appears to be the case despite the so-called committee’s good communication with the House.

SEC officials recently provided a briefing to the staff of Democratic members of the House Financial Services Committee. The briefings reportedly covered their views on the regulation of digital assets, as the committee is about to consider a bill establishing a comprehensive framework for the U.S. cryptocurrency market.

While the SEC appears to be hesitant to respond to the House’s request, the Commodity Futures Trading Commission (CFTC) has reportedly been receptive so far, providing congressional staff with some technical assistance.

FINAL DRAFT OF CRYPTOCURRENCY MARKET ACT TO BE PUBLICATIONS

Various committees of the House of Representatives have been working together for months to develop a new bill for the country’s crypto market. The cryptocurrency markets bill, led mostly by Republican members, is expected to guide U.S. market regulators on how to convert digital assets from securities to commodities.

Additionally, it will temporarily give the Commodity Futures Trading Commission superior powers over the crypto commodity market, primarily bitcoin trading.

The final draft of the multi-committee bill will reportedly be introduced today (July 20, 2023). A committee debate and vote is expected next week.

Originally, committee debate and amendment proceedings for the Financial Services Committee portion of the bill were scheduled for Wednesday, July 19. However, this “mark-up” has been rescheduled to next week to allow sufficient time for additional scrutiny by committee members.

Senator Urges SEC Chairman to Crack Down on Crypto Firms

On Wednesday, July 19, two prominent figures in the U.S. Senate criticized the cryptocurrency industry, urging the Securities and Exchange Commission to take a more aggressive approach to regulation.

Democratic Senator Dick Durbin D-III condemned the activities of U.S. cryptocurrency companies. Government officials stated:

They spend billions on stadium or stadium naming rights deals to gain misleading credibility among ordinary Americans and manipulate prices with bogus tokens of no underlying value.

Republican Senator John Kennedy of Louisiana asked Gensler why “an emergency injunction was not issued to force the bankrupt FTX exchange to cease operations” before its collapse last November.

The SEC chairman responded:

We investigate by the books. I’m sure you and the American public expect us to follow the facts, obey the law, and get people’s subpoenas right.

While Gensler agreed with the senator about the crypto industry and the need for more policy, he made a case for the underlying technology. At the same time, he took the opportunity to apply for more funding for his agency.