Crypto regulation could undergo a major overhaul as House Republicans take steps to revamp the oversight of emerging class assets.
While the House Financial Services Committee has drafted a series of smaller bills in recent months, according to Rep. French Hill, who heads the Digital Assets, Financial Technology and Inclusion Subcommittee, the committee tackle the broader problem in the coming months.
About crypto regulation and crackdown
Coinbase Chief Legal Officer Paul Grewal testified at the hearing on Thursday.he in him memorandumhe urged the establishment of crypto regulation to support the sector and protect consumers.
“Policymakers must work together to develop a comprehensive framework that provides a pathway for customers to access both U.S. digital asset commodities and digital asset securities.”
There is little information on what the commission plans to propose, but as federal bank and market officials step up enforcement of traditional financial standards in the crypto industry.
Companies dealing with digital assets are pressuring parliament to create their own set of regulations for cryptocurrencies, similar to what is happening in various jurisdictions such as the European Union.
A Dire Need for Crypto Surveillance
Despite the Republican Party’s call for regulation of cryptocurrencies, some of the commission’s proposals are pro-industry, suggesting that Grewal’s proposals are being taken seriously.
The need for oversight of cryptocurrencies by governments and regulators stems from several concerns related to the decentralized and often anonymous nature of digital currencies.
Without oversight, experts worry that cryptocurrencies could be used for illegal activities such as money laundering, terrorist financing, and tax evasion.
Additionally, cryptocurrency markets are known to experience extreme volatility, with prices fluctuating significantly over short periods of time. It can lead to economic instability.
Moreover, as cryptocurrencies become more widely accepted, concerns are emerging about their potential impact on the traditional financial system and monetary policy. Regulators are also concerned about protecting consumers from fraud 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 prevent illegal activity, protect consumers, and support long-term growth and stability of the cryptocurrency market.
Some of the measures Congressional Support for Blockchain Technology and Digital Assetssome exempt blockchain developers from certain reporting and licensing requirements, as well as reduce the amount of tax information crypto businesses need to provide.
Similarly, Federal Reserve Chairman Jerome Powell said this week that the House should participate in testimony on the Capitol.
-Canva featured images