Now, with the vote of a congressional committee on Wednesday, those fears would not materialize as the country is taking a step towards integrating cryptocurrencies into the nation’s financial regulation. A few hurdles remain to be cleared still.
This will grant digital assets more leeway when dealing with financial regulators, and open potential new avenues for business without fear of falling foul of the law, as have been the cases of Ripple Labs and numerous others who butted heads with the US Securities and Exchange Commission (SEC) over the past years.
The crypto industry has been in an upheaval due to the collapse of companies such as Voyager Digital, FTX, and Celsius Network, otherwise considered worthy and reliable operators.
Those companies’ failures were mostly because of a lack of adequate governmental oversight which will be changing with the help of the House Financial Services Committee which wants to draw the line once and for all as to when a cryptocurrency is a commodity and when it is a security.
To this end, both the Commodity Futures Trading Commission and SEC will have the extent of their oversight codified into law. This way, the government will do away with the second-guessing that continues amongst regulators, lawmakers, consumers, and businesspeople.
Another committee is looking at the bill today, with The House Agriculture Committee, also an important next step for the draft law’s potential success.
Representative Patrick McHenry, who is the House Financial Services Committee chair has urged his colleagues to act unanimously and move the bill forward, citing countries such as Australia, the United Kingdom, and Singapore, which have already been making headway in their crypto regulation.
Should the bill clear a second Committee it would head into a much tougher ground in the Upper House where Senators are not overly fond of the industry.
Nevertheless, there is strong bipartisan support for the regulation of cryptocurrencies as it’s seen as an important aspect of national security and the stability of the financial system as a whole.
Presently, the Democrats lead the senate, and Sherrod Brown, the Senate Banking Committee’s head, has already expressed reservations about giving a full go-ahead to the bill. In the meantime, SEC continues to pick fights with individual companies, including Coinbase and Binance, two of the industry’s most prominent entities.