U.S. lawmakers are urging the SEC and CFTC to set up a joint working group for cryptocurrency regulation
2 min readTwo U.S. lawmakers have called on the chairman of the Securities and Exchange Commission (SEC) and the acting chairman of the Commodity Futures Trading Commission (CFTC) to set up a joint working group for cryptocurrency regulation.
The SEC and CFTC were invited to work together on cryptocurrency regulation
U.S. officials Patrick McHenry and Glenn “GT” Thompson sent a letter to SEC President Gary Gensler and CFTC President Rostin Behnam on Monday about cryptocurrency regulation.
McHenry is a member of the House Financial Services Committee and Thompson is a member of the House Agriculture Committee.
The letter begins by referring to Gensler’s comments to Senator Elizabeth Warren, which states that “additional organs and resources” are needed to oversee the cryptocurrency sector. McHenry has previously expressed concern that Gensler, who wants to have jurisdiction over all cryptocurrency exchanges, including those without securities, is “a glaring desire for power that will hurt American innovation.”
The letter to Gensler and Behnam states:
“Rather than regulating innovation and job creation in this country, we should promote an active dialogue between regulators and market participants.… An open and collaborative dialogue with all relevant agencies, stakeholders and market participants is essential.”
McHenry and Thompson explained, “This is the aim of Bill HR 1602, the Innovation Barriers Innovation Act 2021, which was approved by the US House of Representatives in April.”
HR1602 requires the SEC and CFTC “to set up a joint working group on digital assets and cooperation with market participants, organizations involved in academic research and, inter alia, investor protection organizations,” the two legislators said. They emphasized that there was nothing to prevent the two agencies from setting up a working group under existing law.
“The Digital Assets Task Force would allow both the SEC and the CFTC to explore how to work together effectively under their current jurisdictions.”
While the SEC requires jurisdiction over all cryptocurrency-related securities, including the exchanges that trade in them, the CFTC has jurisdiction over cryptocurrencies that are considered commodities. CFTC commissioner clarified earlier this month: “To be clear, the SEC has no power over pure commodities or their trading venues, be they wheat, gold, oil.” or cryptocurrencies. ”
The letter to the two agencies concludes with the words:
“We are asking you and your fellow Commissioners for an answer describing the ways in which the SEC and CFTC plan to work together on these critical issues.”
