“You have a whole political party here that’s always in the pockets of big financial companies, regardless of whether it’s a crypto company or whether it’s JPMorgan Chase,” he said, calling out to the Republicans. “So it’s always difficult to do anything legislative. That’s why we depend on regulators so much.”
Brown’s cautious approach to cryptocurrency legislation in the face of mounting demands for a bill underscores how difficult it is for Congress to come together to put together a plan, even in the face of a crisis that highlights weaknesses in regulation. FTX, once one of the largest exchanges in the industry and the most prominent voice in Washington, filed for bankruptcy on Friday and now faces scrutiny over whether it misused client funds.
said the senator. Cynthia Loomis (R-Wyo.), an industry pro with a stretch Various comprehensive regulation bill with the senator. Kirsten Gillibrand (DN.Y.). “By going on for months and months without addressing a digital asset industry that has grown so rapidly, we have put ourselves at a regulatory disadvantage in dealing with a lack of consumer protection.”
Two major questions that lawmakers still have to resolve are the extent to which the agencies have sufficient existing powers to monitor the market, and if not, which agency should be delegated to oversee it.
The leaders of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are vying for parts of the cryptocurrency market, and the divide is reflected in legislation that is starting to emerge from Capitol Hill.
senator. Elizabeth Warren (D-Mass.) said Tuesday that the digital currency bill should be “comprehensive,” covering consumer protections, anti-money laundering rules, and climate safeguards for cryptocurrency mining.
When asked if the SEC had enough powers right now, she said the agency “could do more with existing powers but in order to regulate this whole space, we need additional legislation from Congress.”
Warren said it was an “open question” whether the SEC should be the primary regulator.
“The SEC has certainly shown in the past that it has a strong inclination toward consumer protection but also needs more resources in order to do its current functions,” Warren told reporters.
Senate Agriculture Committee leaders are backing a bill that would give the CFTC a bigger role in overseeing cryptocurrency trading. The CFTC today mainly focuses on financial derivatives such as futures contracts.
Bill – Submitted by the Chairman of Agriculture in the Senate Debbie Stabenow (D-mitch) and the senator. John Bozeman (R-Ark.) — is facing scrutiny in the wake of FTX’s collapse because the company was a major lobbying force behind the legislation. SEC Chairman Gary Gensler said the proposal is “very light.”
Bozeman said in an interview that the committee is working with the CFTC and other stakeholders to “make sure that the legislation that we’ve proposed is going to keep things like this from happening and protect consumers.”
“Right now, people are trying to figure out why it broke,” Bozeman said. “You never really know what changes until you know exactly what’s going on.”
When asked if former FTX CEO Sam Bankman-Fried helped write the law, Stabenow said in an interview that “we took input from everyone involved who was interested in having a transparent system that provides accountability and regulation – so we certainly took their input.”
“Chairman of the CFTC, the Securities and Exchange Commission, the Treasury Department — we’ve worked with everyone, because my concern was exactly that,” she said. “There are no consumer protections at the moment, and the CFTC does not have the legal authority to go in unless there is a crisis.”
The collapse of FTX, Stabenow said, “is an example of why we need it [the bill] more than ever.”
senator. Corey Booker (D-N.J.), a member of the Committee on Agriculture, said “Whether or not the industry has input — it will always happen.”
“This bill is a bipartisan bill” aimed at consumer protection, Booker said.
Brown, a member of the Committee on Agriculture, said the bill “needs significant improvement” and that he has not finished working on the proposal to make sure it is as strong as it should be.
He said the CFTC has “narrow jurisdiction” and “we want to see them be aggressive.”
Brown said that the financial industry’s input into financial regulatory issues — in this case cryptocurrency companies influencing cryptocurrency bills — is “always greater than it should be.”
“I generally believe that,” he said, “and everything I see tells me that.”
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