History has been evidence of the fact that even the biggest of arch rivals had signed a treaty for safeguarding themselves against more severe threats. A similar scenario has cropped up amongst the members of the US Senate and House of Representatives, who have become unlikely allies in gaining an edge over cryptocurrency regulation for the holistic betterment of the community. Democrat Senator Chris Van Hollen was extremely linguistic about this burgeoning phenomenon when he stated that, “The goal here is to have rules of the road that protect consumers without trying to squash innovation.” This bipartisan support of the open-minded Democrats and pro-market Republicans comes at a time when it is becoming an utmost necessity to tame the cryptocurrency tigress.
Republican Senator Mike Rounds revealed to Reuters that:
“There’s no question about the fact that there is a need for a regulatory framework.”
Both Commodities Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC) were sceptical in extending their powers at an open hearing conducted under the auspice of Senator Rounds’ committee. However, both the bodies agreed to focus more on cryptocurrency and its functioning under a regulated environment in upcoming days. Now whether a separate agency is formed to cater to the same or a hybrid is set up from all the existing institutions is something that only time can tell.
Also Read: Without Bitcoin There Would Be No Blockchain, Says US CFTC Chairman To US Senate
Recent regulative calls have caused the bitcoin market to plummet by 60%. This had spread widespread fear amongst investors who were apprehensive about being caught in the middle of a market crash. But, cryptocurrency market is slowly coming back on track hence posing as a considerable area of concern to the lawmakers with its resilience.
Bill Huizenga, a member of the Republican House noted that, “The SEC is properly the lead on the issue. Six months ago, we didn’t see this explosion. The marketplace has changed.” His board shall be taking up the bubbling issue of cryptocurrency regulation next month onwards.
House of Representatives – the lower legislative body of US is up for re-election this November with the Republicans holding just a narrowing majority. The Republicans also hold a meagre lead against the 100-member chamber of a third of the US Senate. Both the parties are viewing November as the ultimate chance to change the course of their political fortunes with a Republican President set for two more years. The U.S. politicians have a habit of hitting easy targets making cryptocurrency all the more susceptible courtesy its bad press reviews and linkage with fraud and money laundering.
House Democrat Carolyn Maloney, who wishes to expand the jurisdiction of SEC over cryptocurrencies warned that:
” A lot of people don’t realize there’s nothing backing these virtual currencies.”
Tom MacArthur, a Republican House member cautioned stating that:
“We have to look carefully at all of the cryptocurrencies and make sure individuals don’t get taken advantage of.”
Republican Dave Brat, a House Freedom Caucus member showed signs of ambiguity when he exclaimed that,:
“I‘m a total free-marketer, so I don’t want to regulate, but if it’s a currency that could destabilize the whole economy, you’re going to have that conversation.”
The White House has not yet come ahead with any policy regulations in spite of expressing concerns about the growing crime rate in crypto sector. Rob Royce, the Special Assistant to the President said that: “I think we’re still absolutely studying and understanding what the good ideas and bad ideas in that space are. So, I don’t think it’s close,” when asked about the future prospects of a federal regulation agenda stemming from the Oval Office.
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Tarunima Ghosh Laha is a Finance Post Grad from St. Xaviers who believes Finance is more than just Balance Sheets and Ledger creation. This filmy bookworm who believes she was a sloth in past life also nourishes a penchant of owning a private zoo someday. Equipped with a laptop and online Lexicon she is all set to give finance a glamorous makeover in the form of exciting writeups with bang on info and flashy new words.
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