In a recent interview with Fox News, Chad Pegram, Senior congressional correspondent, said cryptocurrencies are less regulated than other assets.
The new committee for crypto regulation
The federal lawmakers’ attempt to regulate cryptocurrency now has the House setting up a new subcommittee on digital assets, financial technology, and inclusion to assist in drafting relevant policies.
The new committee will overlook regulatory matters regarding crypto and conduct hearings, playing an essential part in drafting requisite measures.
Rep. French Hill (R-Ark.), who has led Republican attempts to examine the possibility of a central bank digital currency, will serve as the head. The vice chair will be Rep. Warren Davidson (R-Ohio), another prominent crypto advocate in the House.
Establishing the digital asset panel shows how cryptocurrency has become a priority for Congress and how their agenda regarding crypto market regulation is fast evolving. In the past, the Financial Services Committee’s primary emphasis has been on supervising banks, Wall Street corporations, and the agencies that oversee them.
Financial Services Chair Patrick McHenry, who has placed crypto regulation at the top of his legislative agenda, added that the group would be responsible for crafting policies. These rules will support financial technology to reach disadvantaged populations and give explicit norms among federal regulators.
Global regulators have cryptocurrencies in sight
Ever since the collapse of FTX , a cryptocurrency exchange, and 3AC, a crypto-focused hedge fund, the crypto industry has been in the cross-hairs of many financial watchdogs. Brad Sherman assesses that the crypto industry might hold Sam Bankman-Fried culpable for the recent mess. However, the sphere is not entirely “clean”.
Senator Elizabeth Warren of Massachusetts, who previously cited that crypto was afraid of the United States Securities and Exchange Commission (SEC)’s regulations, also says that no financial industry has an exemption regarding the law. In her view, all players in the space should comply with the provided laws or face the consequences. Additionally, lawmakers believe the United States needs to catch up with guard rails on crypto and lead the world in developing applicable rules.
A few days ago, the Biden administration formally requested further power for crypto regulation from the US Congress on Friday. In a statement titled “The Administration’s Roadmap to Mitigating Cryptocurrencies’ Risks,” authored by four high-ranking White House officials, the administration outlined its strategy for dealing with the challenges posed by the cryptocurrency market. It pleaded with lawmakers to “step up their efforts” in regulating cryptocurrency. All these events, the FTX collapse precisely, have brought more scrutiny to the cryptocurrency sector.