The latest buzz in XRP is that Congress is urging the U.S. Securities and Exchange Commission (SEC) to create clear and efficient rules for the cryptocurrency industry. The SEC has recently received a partial win in the XRP lawsuit summary judgment, adding to the importance of establishing guidelines for digital assets.
Why is SEC Under Pressure to Frame Rules?
While raising a valid concern U.S. Congressman French Hill and Rep. Dusty Johnson wrote a letter to the SEC Chair, Gary Gensler, emphasizing the need for productive rules formation in the crypto space. They stressed the significance of providing a clear regulatory framework for all market participants, making it a priority for the House Committee on Financial Services and the House Committee on Agriculture.
Over the period these committees have held more than 15 hearings on digital asset policy in the past four years, to deal with the existing regulatory gaps. While Congress is steadily working to address these gaps, the SEC has been focused on regulating the market through enforcement actions. Moreover, Congress wants the SEC to collaborate with them to encourage innovation and growth in the markets.
One can imagine the intensity of the pressure as Fox Business Journalist Eleanor Terrett reported that two letters were recently sent to the SEC Chair to pressure the Commission. The intention is to put an end to the SEC’s approach to regulating crypto through enforcement. Rep. Ritchie Torres also expressed similar concerns to Gary Gensler.
Will SEC Work With Congress on Crypto Regulation?
In the wake of the XRP lawsuit ruling, the U.S. House Committee on Financial Services Republicans emphasized the importance of the SEC chair working with Congress to protect digital asset users. This highlights the growing interest in establishing clear rules and safeguards for the cryptocurrency industry.
However, not everyone is on the same page. While Congress is eagerly working to bridge regulatory gaps, the SEC seems to be favoring a more strict enforcement approach. They’re attempting to control crypto intermediaries through multiple rulemaking and staff actions. Will this friction lead to a clash of visions in the crypto arena? Only time will tell.
