Recent Developments in U.S. Cryptocurrency Regulation
Recent developments in U.S. cryptocurrency regulation could lead to a significant reform of the framework governing digital assets. A market structure bill currently under consideration in the Senate proposes the creation of a collaborative committee involving both the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). This initiative aims to resolve ongoing regulatory conflicts within the cryptocurrency sector.
Key Provisions of the Proposed Bill
The proposed bill is designed to clarify several key areas, particularly regarding decentralized finance (DeFi) developers and activities like airdrops. It lays out specific provisions that would exempt decentralized physical infrastructure networks (DePINs) from existing securities laws, thus fostering a more favorable environment for innovation within this evolving space.
Establishment of a Joint Digital Asset Advisory Committee
In a move towards better regulatory harmony, the draft bill also recommends the establishment of a joint digital asset advisory committee. This committee would serve as a platform for both agencies to align their regulatory strategies concerning digital assets, which have often been at odds.
Collaboration Between SEC and CFTC
In recent months, the SEC and CFTC have increased their collaboration on cryptocurrency matters and have announced plans for a public roundtable to discuss their regulatory priorities on September 29. Citing the importance of a united front,
SEC Chairman Paul S. Atkins and Acting CFTC Chairwoman Caroline D. Pham emphasized that an integrated regulatory strategy can mitigate unnecessary obstacles, enhance market efficiency, and support innovation in the U.S. financial markets.
Their collective aim is to ensure that the country maintains its leadership position in global capital markets.
Future Prospects and Legislative Efforts
There are high hopes that this market structure bill may be enacted into law by the end of the year, with Senator Cynthia Lummis indicating that it could receive President Trump’s signature before Christmas. In addition to this legislative effort, the Small Business Administration has ordered banks to resume services for clients who were wrongfully denied access, with an enforcement deadline set for December 5. Meanwhile, the Consumer Financial Protection Bureau has noted instances of potential overreach in the treatment of firms during the Biden administration, suggesting ongoing scrutiny of regulatory practices across the board.
