House Financial Services Committee Chairman Patrick McHenry and Agriculture Committee Chairman Glenn Thompson released a joint statement calling on the U.S. Congress to bring clarity to the regulation of cryptocurrencies. The congressmen are referring to a bill they recently introduced that delineates the types of cryptocurrencies and options for regulating them. If passed, the bill would help protect investors in both the cryptocurrency and traditional financial markets, McHenry and Thompson assure.
It is their document that can fill the regulatory gaps present in the court’s decision in Ripple v. SEC, the senior congressmen insist. Last week, the court ruled: cryptoassets traded on exchanges do not qualify as securities. However, cryptoassets may be considered investment contracts under certain circumstances, such as when sold to legal entities.
“SEC Chairman Gary Gensler can no longer take a coercive approach to regulating the industry that only hurts investors and creates uncertainty,” the politicians said in promoting their bill.
U.S. Senator Cynthia Lummis urged Congress to fast-track her bill, which she worked on with New York State Senator Kirsten Gillibrand, for passage. According to Lummis, that provision is already written into her bill.
Many lawmakers have repeatedly criticized Gensler for being tough on cryptocurrency companies. In June, a bill emerged proposing to remove Gensler as SEC chairman. This sparked rumors of his resignation, which turned out to be false.