U.S. Congressmen Suggests SEC, CFTC to Work together on Crypto Regulation

Jafrin  |  Aug 18, 2021

Two members of the United States House of Representatives have sent a letter both to the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) suggesting they work together for the regulation of cryptocurrencies and digital assets. 

SEC and CFTC Should Form Working Group on Digital Assets

U.S. House of Representative Patrick McHenry and Representative Glenn Thompson sent a letter to the chairman of the SEC, Gary Gensler, and the acting chairman of the CFTC, Rostin Behnam to form a working group on digital assets. 

While McHenry is a Republican member of the House Financial Services Committee, Thompson is a Republican of the House Committee on Agriculture.

Addressing the need for a working group on digital assets, the letter states: 

“A working group on digital assets would enable both the SEC and CFTC to explore how to effectively use their current jurisdiction cooperatively,” 

The representatives continued:

“Such a working group can foster transparent engagement with innovators in the digital asset ecosystem. As Congress contemplates additional legislation to address regulatory gaps, this work could provide us with additional information and clarity as we make these important policy decisions.”

Need for Crypto Regulatory Clarity

U.S.-based investors often criticize the lack of regulatory clarity regarding cryptocurrencies in the country. With the SEC handling crypto-related securities and the CFTC handling crypto assets considered as commodities, the line often seems blurred over a definite crypto regulator.

In fact, a CFTC commissioner clarified on this earlier this month, saying:

“Just so we’re all clear here, the SEC has no authority over pure commodities or their trading venues, whether those commodities are wheat, gold, oil, or crypto assets.”

With this in mind, the U.S. lawmakers request both the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) to work together under the balance, protection, and innovation to ensure the digital asset marketplace flourishes in the United States.

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