Crypto Regulation: A Call for Congressional Clarity on Crypto Framework

Sunday, 8 September 2024, 18:00

Crypto regulation is essential for innovation. Congress must act to create a clear framework for regulating crypto, distinct from outdated securities laws. Without it, the U.S. risks losing its competitive edge in this financial innovation. Legal clarity is crucial for the development and growth of the crypto industry.
Thehill
Crypto Regulation: A Call for Congressional Clarity on Crypto Framework

Why Congress Needs to Act on Crypto Regulation

Crypto regulation is essential for innovation. Congress must establish a clear framework for regulating crypto, which is distinct from outdated securities laws. Without it, the U.S. risks losing its competitive edge in this financial innovation.

The Current State of Crypto Regulation

Currently, the SEC's interpretation of the 1934 Securities Exchange Act creates confusion. Many crypto tokens do not fit the traditional definition of securities. The SEC claims jurisdiction over crypto activities yet fails to provide specific rules.

  • The SEC has regulated by enforcement rather than providing clarity.
  • Entrepreneurs are moving to countries with clearer regulations.

Steps Toward Legislative Clarity

Congress has begun to move toward a legislative framework for crypto:

  1. Reps. Patrick McHenry and Wiley Nickel are key figures in advancing bipartisan legislation.
  2. The House's recent vote on FIT 21 shows growing support for clear crypto regulation.

With potential changes in political alignment, the time for action is now. Legislation could solidify the U.S.'s position as a leader in global finance.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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