Two members of the U.S. House of Representatives have sent a letter to Securities and Exchange Commission (SEC) Chairman Gary Gensler, urging him to work with Congress on establishing a comprehensive regulatory framework for cryptocurrencies.
Representatives French Hill and Dusty Johnson, who serve on the House Financial Services Committee and the House Agriculture Committee, respectively, expressed concern over the SEC's approach to enforcement and regulation by rule-making, which they say has created confusion and uncertainty for the digital asset industry and investors.
Representatives noted that for the past four years they have been working to close regulatory gaps in the U.S. digital asset market, holding hearings, introducing bills, and issuing a draft discussion proposing a clear division of powers between the SEC and the Commodity Futures Trading Commission (CFTC).
Representatives argued that the legislation they drafted would provide stronger consumer protections and clarity for market participants than enforcement actions that only punish bad actors after harm has been done.
They also accused the SEC of coinciding its actions with Congressional activities in order to exert political influence.
*Not investment advice.