Two U.S. legislators have asked the chairman of Securities and Exchange Commission (SEC), and the acting chairman at the Commodity Futures Trading Commission, (CFTC), to create a joint taskforce to regulate crypto assets.
SEC and CFTC invited together to discuss crypto regulation
McHenry was the first member to the House Financial Services Committee. Thompson, however, is the first member to the House Committee on Agriculture.
The letter refers to Gensler’s comments made to Senator Elizabeth Warren. Gensler stated that “additional authorities and resources” are required for oversight of the cryptocurrency industry. McHenry previously expressed concern that Gensler, who wants jurisdiction over all crypto exchanges (even those unrelated to securities), was “a blatant takingover that will hurt American innovation.” “.
The letter to Gensler & Behnam says:
Rather than regulating innovation and job creation outside this country, we should promote an active dialogue between regulators and market players… An open and collaborative dialogue with all relevant agencies, stakeholders and market players is essential.
McHenry and Thompson explained that this is the goal of HR 1602, which is the Removing Barriers to Innovation Act of 2021. This Act was passed in April by the US House of Representatives.
The bipartisan HR 1602 law requires the SEC or CFTC to “establish a joint digital asset task team with market players, organizations involved academic research, investor protection organizations, and other organizations,” stated the legislators. They stressed that there is nothing stopping the two agencies creating a working team under the current law.
“A working group for digital assets would allow both CFTC and the SEC to explore how they can effectively use their current jurisdiction cooperatively,” adds the letter.
While the SEC claims to have jurisdiction over all crypto-related securities and the exchanges that trade them on their behalf, the CFTC is able to regulate crypto assets which are commodities. A CFTC commissioner clarified earlier this month: “Just to be clear here, the SEC has no authority over pure commodities or their trading venues, whether those commodities are wheat, gold, oil…. or crypto assets.
The letter from the lawmakers to the agencies concludes
We need to hear from you and your fellow Commissioners about the plans of the SEC/CFTC in order to address these critical issues.
What do you think about the suggestions made by Representatives McHenry & Thompson? Please leave your comments below.
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