In light of the recent House Financial Services Committee (HFSC) hearing on digital assets, U.S. Rep. Erin Houchin (R-IN) has emphasized the urgent need for market-structure legislation for digital assets, stating that it is long overdue.
In expressing her optimism, the congresswoman believes that the United States should take the lead in this sector due to its immense potential.
“As this Administration and SEC Chairman Gary Gensler do all that they can to drive this growing sector elsewhere, global counterparts like the EU are working to establish guidelines that encourage innovation while protecting consumers," Houchin told the Federal Newswire this week. “Given the immense potential this sector has already shown, there is no reason why the U.S. shouldn’t lead in this space. I am encouraged by the progress we have made this Congress within the Financial Services Committee and the Subcommittee on Digital Assets, and I look forward to continuing to work alongside Chairman McHenry, Chairman Hill, and my colleagues on the committee to see this legislation cross the finish line. As Chair Gensler continues his crackdown on this industry by claiming nearly all tokens are securities and regulating through enforcement, clear regulatory guidance is needed now more than ever."
Houchin's remarks came after the June 13 HFSC hearing titled The Future of Digital Assets: Providing Clarity for the Digital Asset Ecosystem, during which lawmakers discussed the recently released Digital Asset Market Structure Discussion Draft.
The hearing occurred soon after the SEC initiated legal actions against prominent cryptocurrency exchanges Binance and Coinbase. In a Cointelegraph report, Gensler asserted that all cryptocurrencies except Bitcoin should be classified as securities, implying that they are subject to the SEC's regulatory authority.
Lawmakers across the country have voiced criticism of the SEC's approach to regulating the crypto industry and called for clearer guidelines for industry participants.
U.S. Sen. Cynthia Lummis (R-WY), for example, said in a June 15 tweet, "More than 50 million Americans own a crypto asset. We need to establish clear rules of the road that protect consumers and encourage financial innovation but limit the regulatory overreach that the SEC is currently engaging in."
Additionally, U.S. Rep. Ritchie Torres (D-NY) recently told MarketWatch that Gensler and the SEC are undermining Congress’s efforts to legislate comprehensive regulations for the crypto industry.
“The latest enforcement action against Coinbase is an egregious example of regulation by enforcement,” Torres said. “It demonstrates a complete contempt for Congress which is in the process of developing a [regulatory] framework.”
Binance responded to the lawsuit in a blog post, expressing the company's disappointment that the SEC has chosen this path, especially during a time when the industry is looking for more regulatory clarity.
"Unfortunately, the SEC’s refusal to productively engage with us is just another example of the Commission’s misguided and conscious refusal to provide much-needed clarity and guidance to the digital asset industry," the post said.
