US industry watchdogs oppose draft bill on crypto market structure

An confederation of manufacture watchdogs based successful the United States has agreed to explicit absorption to a projected draught measure connected the crypto marketplace operation by the United States House Financial Services Committee.

In elaborate correspondence addressed to the committee, groups, including Americans for Financial Reform and the Center for Responsible Lending, claimed that stakeholders successful the crypto manufacture had actively lobbied successful enactment of the committee’s draught proposal, known arsenic the Digital Asset Market Structure Discussion Draft bill. The watchdogs asserted that the crypto manufacture failed to show immoderate applicable usage cases beyond speculative investment.

The missive accused the crypto marketplace of seeking favorable authorities nether the guise of crypto innovation:

“Of peculiar interest is the projected bill’s proviso that would change the SEC’s valuation of regulatory rulemaking successful each securities markets, compelling the bureau to measure caller rules based connected the criterion of ‘innovation.‘”

The volition down the broad integer plus measure was to establish a regulatory framework successful the United States, encompassing well-defined rules and guidelines for the crypto industry. Earlier, Cointelegraph reported that the committee chair, Representative Patrick McHenry planned to clasp a committee vote successful July 2023. The focal constituent of the draught measure revolves astir the engagement of the U.S. Securities and Exchange Commission (SEC) successful overseeing the regulatory framework.

Screenshot of the crypto markets measure absorption sign-on letter. Source: Our Financial Security

Related: What to expect from the archetypal Coinbase-SEC hearing

In June 2023, the SEC launched idiosyncratic legal actions against 2 salient crypto exchanges, Coinbase and Binance, some known for their important trading volumes. Surprisingly, traders swiftly brushed disconnected the news, with minimal interaction connected crypto marketplace prices.

In absorption to wide demand, the watchdogs asserted that Congress should backmost the ongoing enforcement actions of the SEC arsenic a means to “safeguard consumers.“ Conversely, assorted jurisdictions successful Europe and Asia are actively striving to accommodate crypto businesses relocating distant from the United States.

Collect this nonfiction arsenic an NFT to sphere this infinitesimal successful past and amusement your enactment for autarkic journalism successful the crypto space.

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