It’s nearly impossible for the entire government to be on the same page. For any given issue, there are always dissenting opinions. Of course, this is no different when it comes to crypto. Lawmakers have been constantly at odds on the topic; some say crypto is an avenue for crime while others call it the path to real financial freedom. Today, these differing sides are clashing once again. Specifically, some Congresspeople are lashing out at a U.S. Securities & Exchange Commission (SEC) proposal that could have broad effects on the crypto market.
SEC Chairperson Gary Gensler has made his feelings toward crypto clear so far; the official has often talked about how the industry is rife with scams and developers in far over their heads. This is not an unpopular take among policymakers, either. From U.S. Secretary of the Treasury Janet Yellen to Senator Elizabeth Warren, there’s no shortage of skeptics in the government.
However, it seems like a great deal of lawmakers — both Republican and Democrat — are now coming around on the market, if they weren’t already in support of it. This support manifests in a number of ways, be it industry regulation or the implementation of a U.S.-backed Central Bank Digital Currency (CBDC). Now this week, it looks like pro-crypto lawmakers are voicing their opinions again by slamming the SEC proposal.
Crypto News: Republican Lawmakers Respond to SEC Proposal
Today’s crypto news stems from a SEC proposal first published in late January. The 600-page proposal first got the attention of investors after SEC Commissioner Hester Peirce called it a “Trojan Horse.” Now, interest is ramping back up as Congresspeople take aim.
The proposal in question advocates for amendments to the Securities Exchange Act of 1934. While drenched in minutiae, the lengthy document is controversial for one reason in particular: it calls for the SEC to redefine what constitutes an “exchange.”
Under a new definition, the SEC would be able to more harshly regulate and probe crypto exchanges. Exchanges would have to go through much more red tape in order to implement tools like automated market makers (AMMs). They would also need to track every transaction on exchange and report them to the government.
In March, the SEC doubled down on its desires to influence the crypto market by changing the definition of “dealer,” producing another proposal on the amendment. Now, lawmakers are responding. Specifically, a pair of Republican Congressmen — Patrick McHenry and Bill Huizenga — sent a letter to Gary Gensler advocating against these proposals.
In the letter, McHenry and Huizenga argue that changes to the definitions of “dealer” and “exchange” could have sweeping detrimental effects to the crypto ecosystem. They also call on the SEC to produce more analysis, justification and clarity surrounding its desires to change these definitions. Lastly, they demand the SEC provide more adequate time for its proposals to be reviewed by the public.
On the date of publication, Brenden Rearick did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.