Republicans in the House have proposed legislation to fill gaps in the country’s cryptocurrency regulations.
The draft plan, submitted by Reps. Patrick McHenry of North Carolina and Glenn Thompson of Pennsylvania, offers the Commodity Futures Trading Commission (CFTC) special spot market jurisdiction over crypto commodities under current law. The Securities and Exchange Commission (SEC) would be in charge of supervising digital-asset securities at the same time.
“Our goal is to strike the appropriate balance between consumer protection and encouraging responsible innovation,” said House Financial Services Committee Chairman Patrick McHenry in a news release published on Friday (June 1).
He went on to say that the draft is the product of a “unprecedented joint effort” between his committee and the House Agriculture Committee, “giving us a better shot at striking that balance.” I invite stakeholders and market players to submit constructive input to assist us in improving our legislation.”
According to the document, present standards stifle innovation and fail to safeguard consumers. To address this, the measure would prohibit the SEC from banning an alternative trading system (ATS) from listing crypto securities and would force the SEC to change its regulations to allow broker-dealers to hold digital assets.
According to the bill’s authors, these reforms are intended to create a more favorable climate for market players and to encourage more efficiency in the cryptocurrency field.