Breaking: 21 US Watchdogs Oppose Crypto Bill

Crypto Market News: A group of United States based industry watchdogs came together in opposition to the US House Financial Services Committee’s proposed draft bill on the crypto market structure. The comprehensive digital asset bill was intended to bring in a regulatory framework in the US that includes clear rules and guidelines for the crypto industry. Earlier, CoinGape reported that the committee Chair Patrick McHenry planned to hold a committee vote in July 2023. The draft bill is centered around the role of the US Securities and Exchange Commission’s (SEC) in monitoring the regulatory framework.

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In June 2023, the SEC initiated separate lawsuits against two of the largest crypto exchanges by trading volume, Coinbase and Binance. Despite this, traders digested the news quickly with the Bitcoin price dropping very little.

21 Watchdogs Oppose Draft Crypto Bill

In a comprehensive letter to the US House Committee on Financial Services, organizations like the Americans for Financial Reform and Center for Responsible Lending alleged that the crypto industry stakeholders lobbied in favor of the Committee’s draft proposal, the bill, ‘Digital Asset Market Structure Discussion Draft.’ The watchdogs wrote that crypto industry did not show any viable use cases beyond speculative investment. More interestingly, they accused the crypto market of lobbying for favorable laws in the shadow of crypto innovation.

“Perhaps the most damaging aspect of this bill is that it would change how the SEC evaluates all regulatory rulemakings for all securities markets by requiring the agency to evaluate new rules using “innovation” as a criterion.”

Contrary to the popular demand, the watchdogs said the Congress should in fact support the SEC’s ongoing enforcement actions to “protect consumers.” On the other hand, several jurisdictions in Europe and Asia are pushing forward to accommodate the crypto businesses moving outside the US.

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