Regulatory Showdown: Republicans Challenge SEC on Crypto Industry Restrictions
The Grand Old Party, known for its love of a good fight, is taking on the crypto industry.
House Financial Services Committee Republicans made a bold move by asking the U.S. Securities and Exchange Commission (SEC) to back down from its proposed rule to redefine “exchange.”
In a letter, the lawmakers argued that the SEC’s rule change would stifle innovation, harm digital asset market participants, and put a damper on the U.S. economy. The proposed definition of “exchange” would include systems that bring buyers and sellers of securities together using non-firm trading interest and communications protocols.
Republicans believe that this expanded definition goes beyond the SEC’s authority and would impede the development of the digital asset ecosystem, leaving U.S. technological innovation stagnant.
This isn’t the first time Republicans have taken a swing at the SEC over its tough stance on the digital asset industry. Even SEC Commissioner Hester Peirce, a Republican, has criticized the agency for hindering innovation and competition in financial markets.
In a separate letter last month, Republican lawmakers accused SEC Chair Gary Gensler of pushing the digital assets ecosystem into an improper regulatory framework.
The SEC has been on a rampage this year, filing lawsuits against major crypto brands like Kraken, Coinbase, Gemini, Binance, and Binance US. Gensler seems determined to crack down on any coins or tokens he deems unregistered securities, resulting in charges against several digital asset companies.
In fact, Gensler’s recent comments have left many lawmakers and crypto companies fuming. He suggested that the U.S. may not be interested in welcoming the digital asset industry, stating that the current industry was “built on non-compliance” and adding, “We don’t need more digital currency.”
Lawmakers argue that the SEC is overstepping its boundaries, while crypto companies are now eyeing alternative countries for business opportunities. This regulatory tussle shows no signs of slowing down, as both sides dig in their heels for a battle that could shape the future of the crypto landscape.
Clever Robot News Desk 16th June 2023