Lawmakers Feel Pressure to Establish Clear Legislative Guidelines for Cryptocurrency Industry
The U.S. House Financial Services Committee and House Agriculture Committee are planning to introduce regulatory legislation for the cryptocurrency industry within the next two months, according to Rep. Patrick McHenry, the House Financial Services Committee’s chairman. The proposed bill aims to tackle both securities and commodities challenges in the emerging technology space.
At CoinDesk’s Consensus 2023 event, McHenry suggested that President Joe Biden could sign a relevant bill within a year. However, he acknowledged the inherent difficulties in legislating emerging technologies, highlighting the need to ensure secure banking opportunities in the cryptocurrency domain.
Meanwhile, Sen. Cynthia Lummis (R-Wyo.), known as the Senate’s “Crypto Queen,” expressed her eagerness to collaborate with McHenry on these efforts. She announced that a revamped version of the bipartisan “Responsible Financial Innovation Act” will be revealed in “six to eight weeks,” featuring enhanced sections on national security and cybercrime.
Lummis emphasized the urgency of addressing crypto regulation prior to the 2024 election, highlighting the uncertainty of bipartisan support for stablecoin legislation. The recent FTX crypto exchange crisis and the downturn in crypto banking have added pressure on lawmakers to establish clear legislative guidelines for the cryptocurrency industry.
In conclusion, the upcoming regulatory legislation for the cryptocurrency industry by the U.S. House Financial Services Committee and House Agriculture Committee is a significant development in the space. The proposed bill aims to address securities and commodities challenges, while the revamped version of the “Responsible Financial Innovation Act” features enhanced sections on national security and cybercrime. The urgency to address crypto regulation prior to the 2024 election has also been highlighted, given recent events such as the FTX crypto exchange crisis and the downturn in crypto banking.
