US lawmakers have proposed creating a working group, which will include representatives from the SEC and CFTC, to assess the current regulatory framework for cryptocurrencies and make recommendations for changing it.
Members of the US House of Representatives Patrick McHenry and Stephen Lynch have presented a bill that will help clarify the regulation of cryptoassets. The bill calls for the creation of a working group composed of industry experts, representatives from the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to assess the current regulatory framework for cryptoassets in the United States.
The ultimate goal of the Removing Barriers to Innovation Bill will be to clarify the SEC’s jurisdiction over certain crypto-assets that are securities, as well as the CFTC’s powers when a crypto-asset falls under the commodity category.
According to the document, Congress will form a working group, consisting of representatives of the SEC and CFTC, within 90 days after the adoption of the bill. Non-governmental representatives will be invited from fintech companies as well as small business finance organizations and investor advocacy groups.
During the year, the working group will have to submit a report analyzing the current regulation, its impact on the primary and secondary markets, and how the rules affect the competitiveness of the United States. The report will also look at how custody, private key management and cybersecurity are currently being viewed under the law and what future best practices for fraud prevention and investor protection might look like.
The report will also include recommendations for improving the primary and secondary markets for digital assets, including their “fairness, orderliness, integrity, efficiency, transparency and availability.” Chamber of Digital Commerce Policy Director Amy Davine Kim said the bill aims to create an organized and comprehensive regulatory framework for digital assets in the United States.
“The bill formally brings the SEC and CFTC together to address some of the key issues that have influenced legal clarity in this area for years,” Kim said. “We now have the opportunity to start exploring them with a range of stakeholders.”
As a reminder, SEC Commissioner Hester Pierce said last month that it is necessary to accelerate the development of clear regulation of cryptocurrencies as large companies like Tesla, BNY Mellon Corp and Mastercard enter the cryptocurrency industry.
