The SEC is beginning to feel the heat from US congressmen and leaders in the cryptocurrency industry to end the delay and uncertainty over the introduction of a regulatory framework.

Congressman, Tom Emmer, Republican-Minnesota recently urged the SEC put cryptocurrency regulations in place;

This statement came at a hearing on Capitol Hill, hosted by Warren Davidson, Republican-Ohio, on September 25th, which received cross-party support and was attended by leading players in the crypto industry, such as Coinbase, Kraken, Nasdaq, Circle, Fidelity, State Street and others, many of whom recently formed a lobbying group with the following stated aim;

The SEC Chairman, Jay Clayton, has previously declared the SEC’s stance on cryptocurrency regulation as such;

But, now the role that congress will play in the formation of regulations is recognized by the industry and another congressional representative at the discussion, Darren Soto, Democrat-Florida, also added to congressman Emmer’s concerns regarding the SEC’s application of the “Howey Test” to cryptocurrencies and he believed a new regulatory framework for cryptocurrencies was required;

At this meeting, industry leaders conveyed the need for the US lawmakers to recognize the importance of preventing blockchain innovation and capital flight from the US by establishing a flourishing, cryptocurrency-friendly environment that would make the US competitive in the global FinTech race. The SEC should look to the enlightened approach of the Clinton administration’s regulations of the internet, otherwise the advantage would pivot to Asia.

The reality of the SEC’s procrastination and the US lagging behind in the global FinTech race was confirmed by Ripple’s Director of Regulatory Relations, Ryan Zagone;

All this preceded a subcommittee hearing on Financial Institutions and Consumer Credit “Examining Opportunities for Financial Markets in the Digital Era”, which took place on Thursday 28th September, the video link for which is provided below.

There were a number of positive statements made during this hearing, that recognized the need for a regulatory sandbox in which firms could innovate without fear of regulatory penalty and the beneficial outcomes of such, that partnerships between banks and FinTech would have positive financial outcomes, whilst being safer and more inclusive. Regulations should also be light enough to enable the FinTech market to prosper.

 

 

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Responses

    1. sandwichbill Post author

      Yes they have, but Trump has just appointment a Bitcoin friendly commissioner, Elad Roisman, to the SEC and this adds to another previous Btc friendly appointment of his, Heston Peirce. So, gradually the old fossils are being replaced and with this pressure we should see a regulatory outcome by the end of Q2 next year.

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    1. sandwichbill Post author

      Yep, the SEC is going to finally wake-up to this new economic reality and they’re being pressured into taking action by industry leaders, banks, hedge-funds and now some congressmen have joined the cause. It’s interesting that Trump is appointing these pro-crypto commissioners. This surely isn’t by accident, since he doesn’t seem to be disagreeing with any of their pro-crypto positions and statements. Trump is a market guy and a realist.

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  1. Workin2005

    I think they’re realizing the need for companies to innovate. As pointed out, they need to be able to do that without fear of punishment or crushing regulation down the line. My guess is we’ll see some major news sooner rather than later…I hope anyway. Great post @sandwichbill

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  2. Yanika

    Excellent article! Good to hear that US authorities are kinda giving a green light for a friendly crypto environment in USA.
    Interesting to mention the statement of Ripple’s Director, who recognizes the enormous impact of the blockchain on the world affairs and the American administration has to act ASAP to make sure it will keep up with the World Fintech Trends. Decentralization means all countries have to be active players in it!

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    1. sandwichbill Post author

      Yeah, it’s interesting to see what the Ripple guy said, because the SEC don’t seem to have been listening to people like him and presumably, that’s why these industry leaders felt the need to form a lobby group. Thanks.

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    1. sandwichbill Post author

      You might be on to something there. The actions they have recently taken in regards to Elon Musk and 1boker has raised questions about the SEC’s relevance. It is rumoured that BitMEX could be next.

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