House Crypto Bill Won't Restrain SEC and Could Threaten DeFi, Legal Experts Say
The House bill aims to give the crypto industry the regulatory clarity it's been waiting for, but legal experts say there’s reason to remain cautious.
U.S. lawmakers rolled out a much anticipated digital assets bill yesterday, raising hopes that it will end what the crypto industry sees as an unfairly hostile regulatory environment.
But some experts say the bill’s vague language, and in particular a provision that could threaten the DeFi market, won’t do much to hold back the SEC and its enforcement approach to crypto.
"I think that we're working backwards if we're bringing more ambiguity to what's going on," Billy Sebell, executive director of the XDC Foundation, told Decrypt.
. . .
The bill, called the Financial Innovation and Technology for the 21st Century Act, aims to redress what the sponsors say are the many shortcomings of the current regulatory regime. Its main sponsors are all Republicans, including House Agriculture Committee Chairman Glenn Thompson (R-PA), Rep. French Hill (R-AR), and Rep. Dusty Johnson (SD-AL).
In the 212-page piece of legislation, lawmakers included new definitions around digital assets, carved out certain exemptions, and set up lanes for registering cryptocurrency exchanges with both the Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC).
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