Gary Gensler, the head of the Securities and Exchange Commission (SEC), is taking steps to regulate the cryptocurrency industry in response to the absence of clear regulations. Despite expectations that Republicans gaining control of the House would bring about restraints on Gensler’s authority, they have yet to formally introduce their key proposals after six months of hearings and discussions.
With the 2024 campaign season approaching, there is limited time for debates and building support, especially considering the Democrats’ control of the US Senate.
Ron Hammond, the director of government relations at the Blockchain Association, a crypto trade group, acknowledges the challenges that Republicans face in getting their proposals through the Senate, even if they manage to make progress in the House.
SEC continues its scrutiny
The SEC, on the other hand, continues to exert its jurisdiction over the cryptocurrency market and insists that the industry adhere to its strict rules for protecting investors, despite facing significant challenges in court.
The SEC has expanded its authority to cover various aspects of the cryptocurrency market, including trading platforms and the majority of tokens. It has recently filed lawsuits against two major crypto exchanges, casting a shadow over the entire industry. Additionally, the SEC has impeded the establishment of a Bitcoin exchange-traded fund and sought control over stablecoins.
Despite the obstacles, supporters of the cryptocurrency industry remain hopeful. Brett Quick, the head of government affairs for the Crypto Council for Innovation, mentions promising discussions between Republicans and Democrats. However, time constraints pose a challenge, as it is crucial to ensure that both sides have an opportunity to contribute to the process and see modifications to the original proposals.
One area where potential agreement could be reached is on the regulation of crypto stablecoins, which lawmakers from both parties view as a potential unregulated threat to financial stability. Some lawmakers, such as Waters, express their willingness to negotiate with Republicans on a plan in this regard.
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