Congress should collaborate with regulators, such as the Securities and Exchange Commission (SEC), on cryptocurrency regulation, according to a number of American legislators. "Chair Gensler's regulation through enforcement is illegal and offers no consumer protection. The House Financial Services Committee stated that it is time for Biden's regulators to collaborate with Congress in order to pass legislation that will establish clear traffic regulations and strong consumer protections.
Congress and Regulators Must Work Together to Regulate Crypto, Say Lawmakers
A number of politicians have asked regulators to work with Congress on cryptocurrency regulation after the U.S. Court of Appeals for the District of Columbia Circuit decided in favor of crypto asset management Grayscale Investments against the U.S. Securities and Exchange Commission (SEC).
The Financial Services GOP published the following on social media site X on Tuesday:
Regulation by enforcement proposed by Chair Gensler is illegal and offers no consumer protection. It's time for Biden's regulators to collaborate with Congress to pass legislation that would establish clear traffic regulations and strong consumer protections.
The head of the House Committee on Financial Services, Congressman Patrick McHenry (R-NC), wrote on X as well: "SEC Chair Gary Gensler's crusade against the digital asset ecosystem is falling apart under scrutiny from the courts." In a recent lawsuit concerning the offers and purchases of XRP, a federal judge agreed with Ripple Labs over the securities regulator. The SEC has stated that it plans to challenge several aspects of the judgment.
The SEC losing yet another legal battle with cryptocurrency firms, according to McHenry, "is yet another example of why a comprehensive regulatory framework, like the FIT for the 21st Century Act, must be made law." The Financial Innovation and Technology (FIT) for the 21st Century Act (H.R. 4763) was approved by the House Financial Services Committee and the House Committee on Agriculture in July.
For approaching the regulation of the cryptocurrency business with an enforcement-focused focus, the SEC and Chair Gary Gensler have come under fire.
Congressman Frank Lucas (R-OK) criticized the securities watchdog and Chair Gensler last week for approaching regulation carelessly. He claimed that the SEC under Gary Gensler "is pursuing a reckless, hurried rulemaking agenda with inadequate economic analysis and limited public input — threatening to upend our capital markets."