Amidst the ongoing XRP lawsuit, U.S. Congressman French Hill and Rep. Dusty Johnson have jointly penned a letter to Gary Gensler, the Chair of the SEC, emphasizing the crucial need for productive rule formation regarding digital assets. Their key objective is to establish transparent regulations that apply to all participants in the market.
The letter underlines that the House Committee on Financial Services and House Committee on Agriculture are prioritizing the formulation of comprehensive rules. These rules are seen as essential for fostering innovation and growth in the cryptocurrency markets.
Over the past four years, the committees have conducted more than 15 hearings focused on digital asset policies, including a joint hearing that addressed existing regulatory gaps. While Congress has been diligently working towards resolving these gaps, the SEC has predominantly pursued an enforcement-based approach to regulating the market. The commission’s strategy involves exerting control over crypto intermediaries through multiple rulemaking and staff actions.
Recent reports reveal that in the last 24 hours, two letters have been dispatched to the SEC Chair, both aiming to put an end to the Commission’s regulation-by-enforcement method concerning cryptocurrencies. Representative Ritchie Torres has also expressed similar concerns to Gary Gensler earlier.
As the pressure from Congress mounts, it remains to be seen how the SEC will respond to the call for well-defined regulations that will shape the future of the crypto industry.
Disclaimer: The information provided in this post is for general informational purposes only and should not be considered professional or financial advice.