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The United States Securities and Exchange Commission (SEC) is reportedly delaying assistance needed for a congressional bill to regulate the crypto markets, which could pose a hurdle for the bill’s passage. Despite good communication with the House, the SEC has not provided sufficient technical assistance for the bill after almost six weeks of request. However, the Commodity Futures Trading Commission (CFTC) has been responsive, providing technical assistance. A final draft of the crypto market bill, which will give temporary power over crypto commodities markets to the CFTC, is expected to be introduced on July 20, with a committee debate and vote next week. In the meantime, two US Senators urged the SEC to crack down on crypto companies and accused them of manipulative practices. SEC Chairman Gary Gensler agreed that more regulation is needed but also highlighted the potential of the underlying technology.
This article originally appeared on www.newsbtc.com
The US cryptocurrency market has been eagerly waiting for an update on the proposed legislation, the ‘Crypto Assets Act,’ which aims to provide regulatory clarity for cryptocurrencies and digital assets. However, recent reports suggest that the Securities and Exchange Commission (SEC) is allegedly delaying their assistance, causing frustration and uncertainty within the market.
The Crypto Assets Act is a bipartisan bill that was introduced to the US Congress in September 2021. Its primary objective is to provide a clear regulatory framework for cryptocurrencies, defining various categories of digital assets and clarifying which regulatory agencies have jurisdiction over them. The bill intends to bring more stability and transparency to the US crypto market, thereby promoting innovation and investment in the sector.
While the bill has received some positive feedback from industry experts and lawmakers who believe that a regulatory framework is long overdue, it appears to be facing hurdles in its progress. The SEC, which has a crucial role in the development and implementation of regulations around cryptocurrencies, has allegedly delayed providing assistance to the bill, further prolonging the uncertainty surrounding the industry.
The delay in assistance from the SEC has sparked frustration and concern among stakeholders in the US crypto market. Without clear guidelines and regulatory oversight, businesses and investors are often left grappling with legal ambiguities and risks. The lack of regulatory clarity also hinders innovation and growth within the sector, as businesses find it challenging to navigate the existing regulatory landscape.
Additionally, the delay in the Crypto Assets Act comes at a time when cryptocurrencies are gaining increasing mainstream adoption. Major financial institutions, such as JPMorgan and Goldman Sachs, are not only acknowledging the importance of cryptocurrencies but also offering their services to clients interested in digital assets. However, the absence of a comprehensive regulatory framework hinders further institutional participation and investment in the sector.
Critics argue that the SEC’s alleged delay in providing assistance for the Crypto Assets Act reflects their desire to maintain control and authority over the crypto market. They believe that the commission fears losing jurisdiction or influence over the regulatory landscape if the bill is passed as proposed. As a result, critics argue that the SEC may be intentionally manipulating the legislative process to ensure its interests are protected.
Given the significant impact of the SEC’s involvement on the final outcome of the Crypto Assets Act, it is crucial for the commission to be transparent about its position and intentions. The delay in providing assistance suggests a lack of commitment to the broader vision of fostering regulatory clarity in the crypto market.
If the SEC continues to delay its assistance for the bill, it may result in further frustration and loss of trust within the US crypto market. It is crucial for lawmakers, industry experts, and regulators to work together to establish a clear regulatory framework that encourages innovation, protects investors, and promotes responsible growth in the cryptocurrency sector. Failure to do so may result in the United States falling behind other countries that have embraced cryptocurrencies and actively fostered their growth.
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