The US House Financial Services Committee has achieved a landmark victory in the overhaul of Cryptocurrency regulation.
This success signals a significant shift in the push for legitimacy in the field of digital assets.
Shift in the regulatory landscape
The bipartisan vote approved key legislation that outlined specifics related to how key market regulators, the Securities Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), should police Crypto trading.
The effects of this have the potential to reshape the Crypto industry in its entirety.
The bill gives the SEC explicit authority to impose new limitations as well as grants the CFTC sweeping powers over Crypto trading. These new powers are being granted in the hopes of addressing the numerous long-standing jurisdictional conflicts.
The House Democrats did express concerns over seemingly rushing the process, warning that these changes could hinder the SEC’s ability to effectively oversee digital asset firms which has the potential to boil over into political friction.
However, some adjustments were made on behalf of the Republican party to win more Democratic support demonstrating a willingness to make progress.
These attempts were a success, with several Democrats breaking ranks despite staunch resistance from top Democrat Rep. Maxine Waters.
Crypto’s polarising nature
These developments are yet another proof that the Crypto industry as a rapidly developing force is continuing to polarise many opinions, highlighting fluid politics surrounding the industry and the regulatory policies following it.
This will make for a complex passage through the US Senate, which is the next step towards the bill’s inauguration.
Many Senators have already voiced concerns over its prospected success, in particular, the provisions being proposed that would favour the Crypto industry.
The Crypto industry’s response
Industry leaders such as Kraken and Coinbase have welcomed the House’s actions, upholding the view that this is a crucial step in legitimising the sector.
Additionally, this would provide much-needed regulatory clarity making it not just easier to point to the industry’s legitimacy but also allow a more realistic and encouraging landscape for operational compliance.
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