- The US House addresses a critical aspect of crypto regulation: market structure.
- Two hearings were held on the same day to clarify conflicting messages from the CFTC and SEC.
- Congress aims for clarity and stability in the growing and evolving crypto market.
This week, the U.S. House of Representatives is taking on the third-highest priority in cryptocurrency: market structure. Two hearings on the same day will address this critical aspect of crypto regulation, with the House Agriculture and Financial Committees each holding their respective hearings.
Market structure is a vague term, but its significance cannot be overstated. With conflicting messages from the Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC) about their jurisdiction in the crypto sector, Congress is stepping in to clarify matters.
According to Ron Hammond, a former legislative assistant to a Republican congressman and now a director of government relations at BlockchainAssn, these hearings signify that the committees are tackling the issue together. While committees may fight for their jurisdiction and oppose elements that weaken their influence, the joint hearings suggest they collaborate rather than compete.
However, this collaboration may face challenges as committees protect their turf. Due to political constraints, an SRO, or self-regulatory organization, may not be feasible. Nonetheless, this week’s hearings reportedly demonstrate Congress’s efforts to bring clarity and stability to the cryptocurrency market.
As the cryptocurrency market grows and evolves, the market structure will remain a crucial aspect of regulation. Congress’s commitment to tackling this issue is a positive step towards a more robust and well-regulated crypto ecosystem.
Ron Hammond emphasizes the need for collaboration between the House Agriculture and Financial Services Committees if a market structure bill is to be successful. According to Hammond, both committees recognize this and have scheduled same-day hearings to address the issue. Unlike stablecoins, there is currently no draft or principles for a market structure bill, making cooperation between the committees even more crucial.