In just two months, the US is expected to release a crypto policy to regulate the industry and protect users against potential dangers. Unlike the traditional system that has been the foundation of the global economy, the principles and modus operandi of the crypto industry are different and pose unique challenges to regulation.
A US House of Rep. Member, Patrick McHenry, who is also the chair of the House Financial Services Committee, made this revelation known at Consensus 2023. He noted that the policy will be released after a discussion between the House Financial Services Committee and the Agriculture Panel this month. He added that there is a possibility for the President to sign the bill that is meant to address issues related to crypto, securities, and commodities, into law.
Sitting on the panel of the discussion was Sen. Cynthia Lummis, an American attorney and serving US senator from Wyoming since 2021, who reaffirmed that she is willing to work with McHenry as the House of Representatives was better positioned to release a crypto policy than the Senate.
Crypto shouldn’t be a partisan subject
Furthermore, Ms. Cynthia AKA “Crypto Queen” explained that crypto shouldn’t be a partisan subject as the two parties, Republicans and Democrats, have decided and need to come together to make progress on it. “This is a bipartisan subject we need to address before the 2024 election.”
Although the US has tried to create a meaningful guideline for digital assets, especially crypto, there seems to be no concrete progress made so far other than the prosecution of individuals and firms such as FTX that have been involved in illegal activities related to crypto. In April, the Republicans on the House Financial Services Committee made progress toward stablecoin legislation with Democrats.
Last year, in support of crypto regulation in the US, Ms. Cynthia, in partnership with Sen. Kirsten Gillibrand, a Democrat, introduced the bipartisan “Responsible Financial Innovation Act,” targeted at developing guidance for the industry. “We are probably going to have a stronger section on national security. You will see a stronger cybercrime aspect to our bill,” Cynthia told the audience at Consensus.
US banking crisis
Sharing concerns over the recent collapse of some US banks, McHenry said that the role crypto played in the latest banking crisis in the US should not be overlooked. “We have to fix this problem; we have to provide certainty that you can bank safely and soundly,” he said.
He cited a case in point with MiCA in the European Union as a model for the US to catch up with regulations for the industry.