Gensler-led SEC reportedly slows down congressional effort to overhaul crypto in the US
|- The US SEC is allegedly not providing the assistance requested on the final draft of the multi-committee bill for crypto markets in the US.
- The bill aims to help regulators clear a path for crypto to transition from securities to commodities, according to The Block.
- The committee debate and amendment process was pushed to next week to allow for additional review by members.
US Securities and Exchange Commission (SEC) has allegedly slowed down the process of rolling out a multi-committee bill that addresses the crypto markets. According to a report by The Block, SEC chair Gary Gensler’s opinion is valued by the committee because of his prior experience implementing parts of the Dodd-Frank financial reform law that was passed in response to the 2008 global financial crisis.
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US SEC allegedly slows down bill that could transition crypto from securities to commodities
An untitled bill, a multi-committee effort of market structure legislation, would direct US regulators to clear a path for cryptocurrencies to transition from securities to commodities. This implies that the bill would grant the Commodity Futures Trading Commission (CFTC) greater control over the crypto commodities market, Bitcoin, Ethereum and altcoins.
One of the key points in the SEC’s battle with the crypto industry is the financial disclosure requirements. According to the bill, once assets become decentralized enough, they would no longer be subject to the same and free projects from the regulator’s scrutiny.
According to The Block’s recent report, the SEC has slowed down efforts taken towards the multi-committee bill. The bill is a rare joint effort between House committees because the House Agriculture Committee holds jurisdiction over commodities regulation, and a committee debate and amendment process, originally scheduled for the Financial Services portion on Wednesday, was pushed to next week to allow time for additional review by committee members.
SEC is yet to provide substantial technical feedback
Committee members rely on the Gary Gensler-led SEC for technical inputs, due to his expertise, experience and familiarity with the bill. The Block reports that the SEC has yet to provide substantive technical feedback requested by members for the complex piece of legislation. This is likely creating a hindrance in efforts to attract Democrats and their support for the key legislation.
This development has a direct impact on the future of the crypto ecosystem in the US. The adoption and utility of cryptocurrencies like Bitcoin, Ethereum and altcoins labeled as “securities” by the SEC, relies on the multi-committee bill.
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