Crypto regulation could see a major overhaul as House Republicans take steps to overhaul oversight of the emerging asset class.
According to Rep. French Hill, who chairs the House Financial Services Committee’s Digital Assets, Financial Technology, and Inclusion Subcommittee, has drafted a series of smaller bills in recent months, but the committee intends to address broader issues in the coming months.
In Crypto Regulations & Crackdowns
On Thursday, Paul Grewal, Coinbase’s chief legal officer, testified at the hearing. In her prepared speechhe called for the establishment of crypto regulation that would support the sector and protect consumers.
Grewal said:
“We need policymakers to work together to develop a comprehensive framework that provides pathways for customers to access both digital assets commodities and digital asset securities in the US”
There is little information about what the committee plans to propose, but it comes as Federal banking and market officials increase the enforcement of traditional financial standards in the crypto industry.
Companies that deal with digital assets are pushing Congress to create unique regulations for cryptocurrencies, similar to what has been done in various areas such as the European Union.
Image: Forbes
Dire Need For Crypto Surveillance
Despite Republican calls for crypto regulation, some of the proposals in the committee were pro-industry, indicating that Grewal’s recommendations were being heeded.
The need for government oversight and regulation of cryptocurrencies stems from several concerns related to the decentralization and often anonymity of digital currencies.
Without oversight, experts worry that cryptocurrencies can be used for illegal activities, such as money laundering, terrorism financing, and tax evasion.
Additionally, the cryptocurrency market has been known to experience extreme volatility, with prices fluctuating wildly over short periods of time. This volatility creates risk for investors and can lead to more economic instability if left unchecked.
Additionally, as cryptocurrencies gain wider acceptance, concerns have arisen about their potential impact on traditional financial systems and monetary policy. Regulators are also concerned about protecting consumers from fraudulent activity 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 crypto regulation argue that reasonable regulation can help prevent illegal activity, protect consumers, and support the long-term growth and stability of the cryptocurrency market.
Some steps to share congressional support for blockchain technology and digital assetswhile others would exempt blockchain developers from certain reporting and licensing requirements or reduce the amount of tax information crypto businesses must provide.
In addition, Federal Reserve Chairman Jerome Powell said this week that the House should consider it when he testifies on Capitol Hill.
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