The U.S. House Committee on Agriculture recently held a hearing to discuss a draft discussion bill on cryptocurrency that was advanced by Republican lawmakers. The hearing aimed to discuss the bill with Democratic members in order to create a bipartisan legislative proposal.
Testimonies from Industry Leaders
During the hearing, several industry leaders provided their testimonies. Rep. Glenn Thompson, who originally advanced the draft bill, expressed his opposition to regulation by enforcement and his desire for a joint committee legislative proposal. He also noted that Coinbase faced new regulatory action by the U.S. Securities and Exchange Commission (SEC) and stated that this event is why the current hearing is being held.
Paul Grewal, Coinbase’s Chief Legal Officer, expressed his support for the Republican bill, calling it a step forward in providing regulatory clarity. He stated that Congress must separate digital assets and commodities, something that the bill accomplishes by drawing from previous regulations and findings.
Dan Gallagher, Robinhood’s Chief Legal Compliance and Corporate Affairs Officer, also testified and called the draft bill an important step in providing regulatory clarity. He stated that Robinhood generally supports the goals of the draft bill.
Regulatory Gap and Existing Laws
Rostin Benham, chairman of the Commodities and Futures Trade Commission (CFTC), expressed his encouragement towards efforts to close the regulatory gap. However, he stated that any new legislation must not undermine existing laws and that the digital commodity market should be protected by time-tested regulation. He specifically called for the CFTC to receive certain powers and greater assurance of funding.
Several former CFTC members also testified alongside Benham, expressing their support for change. Ex-CFTC commissioner Dan Berkovitz noted the urgent need to close the gap between the SEC and CFTC.
The Draft Bill
Despite concerns over sudden changes to regulation, the draft bill would give the CFTC significant power in its current form. The bill aims to provide regulatory clarity and separate digital assets from commodities. It draws from previous regulations and findings to achieve this goal.
The hearing provided valuable insights into the need for regulatory clarity in the cryptocurrency industry. The draft bill aims to address this issue and has received support from industry leaders. However, concerns over existing laws and regulations must also be taken into consideration. The need to close the regulatory gap between different regulatory bodies was also highlighted during the hearing.