SEC Reportedly Delaying Aid for US Crypto Market Bill

The United States Securities and Exchange Commission (SEC) has reportedly withheld necessary assistance in a Congressional bill to regulate crypto markets. It has been considered a potential obstacle if the bill is to pass in Congress.

Through many sources, block found The SEC has yet to provide substantial technical support for the bill, even after nearly six weeks of requests. This appears to be despite good communication with the House of the said commission, the report said.

SEC officials recently provided briefings to the staffs of Democratic members of the House Financial Services Committee. These briefings reportedly included his opinion on digital asset regulation in light of the committee’s consideration of upcoming bills to establish a comprehensive framework for cryptocurrency markets in the United States.

While the Securities and Exchange Commission is dragging its feet in responding to the House’s request, the Commodity Futures Trading Commission (CFTC) Congressional staffers are said to have been receptive so far, providing some technical assistance.

Final Draft of Crypto Market Bill to be Unveiled

Various House committees have been working together for months to create a new bill for crypto markets in the country. This crypto market bill, led by mainly Republican members, is expected to give instructions to US market regulators on how a digital asset can be converted from a security to a commodity.

Additionally, it will temporarily give the Commodity Futures Trading Commission better power over crypto commodity markets – primarily bitcoin trading.

The final draft of this multi-committee bill will reportedly be tabled today, July 20, 2023. This is in anticipation of committee debate and voting next week.

Initially, a committee debate and amendment process for the Financial Services Committee portion of the bill was scheduled for Wednesday, July 19. However, this “markup” has been rescheduled for next week to allow ample time for additional review by committee members.

Senators Urge SEC Chairman to Crack Down on Crypto Companies

On Wednesday, July 19, two prominent figures in the US Senate criticized the crypto industry, putting pressure on the Securities and Exchange Commission to be more aggressive in its regulatory style.

Democrat Senator Dick Durbin D-III condemned the activities of crypto companies in the United States. government officer Said:

They spent billions on sports arena or stadium naming rights deals to gain deceptive credibility with everyday Americans and manipulate prices with fake tokens with no underlying value.

Senator John Kennedy, a Republican from Louisiana, asked Gensler why “there was no emergency injunction to force the bankrupt FTX exchange to cease its operations before it filed for bankruptcy last November.”

The SEC Chairman responded by saying:

We check with the book. I’m sure you and the American public want us to follow the facts, follow the law, get people the proper summons.

Although Gensler agreed with the senators’ claims about the crypto industry and the need for more policies, he made a case for the underlying technology. Meanwhile, he took the opportunity to request more funding for his agency.

Crypto Total Market Cap at $1.16 trillion | Source: TOTAL chart from TradingView

Featured Image from Techmedia, Chart from TradingView