Crypto regulation could see a major overhaul as House Republicans take steps to revamp oversight of the emerging asset class.
According to the deputy. French Hill, who leads the Digital Assets, Financial Technology, and Inclusion subcommittee, the House Financial Services Committee has drafted a series of smaller bills in recent months, but the committee intends to Addressing broader issues in the coming months.
About cryptocurrency regulation and crackdowns
On Thursday, Coinbase’s chief legal officer, Paul Grewal, testified at a hearing. in Prepared notesHe urged the creation of crypto regulation that would support the sector and protect consumers.
“We need policymakers to work together to develop a comprehensive framework that provides pathways for customers to access both digital asset commodities and digital asset securities in the United States.”
There is little information on what the commission plans to propose, but it comes as federal bank and market officials ramp up their enforcement of traditional financial standards in the cryptocurrency industry.
Companies dealing with digital assets are pressing Congress to create a unique set of regulations for cryptocurrencies, similar to what has been done in various regions such as the European Union.
Much needed encryption oversight
Despite Republican calls for crypto regulation, many of the proposals on the committee are pro-industry, indicating that Grewal’s recommendations are being taken seriously.
The need for government and regulatory oversight of cryptocurrencies stems from several concerns about the decentralized and often anonymous nature of digital currency.
Without censorship, experts worry that cryptocurrencies could be used for illegal activities, such as money laundering, terrorist financing, and tax evasion.
Additionally, cryptocurrency markets are known to be highly volatile, with prices fluctuating wildly in short periods. This volatility creates risks for investors and could lead to broader economic instability if left unchecked.
Moreover, as cryptocurrencies gain wider acceptance, concerns have arisen about the potential impact on traditional financial systems and monetary policies. Regulators are also concerned about protecting consumers from fraudulent activities and ensuring the stability of the financial system.
Crypto total market cap currently at $887 billion on the daily chart | Chart: TradingView.com
Proponents of cryptocurrency regulation argue that reasonable regulations can help prevent illicit activities, protect consumers, and support the long-term growth and stability of the cryptocurrency market.
Some measures are intended to show Congressional support for blockchain technology and digital assetswhile others might exempt blockchain developers from some reporting and licensing requirements or reduce the amount of tax information crypto companies have to provide.
Similarly, Federal Reserve Chairman Jerome Powell said this week that the House of Representatives should think twice during his testimony on Capitol Hill.
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