How is the SEC collaborating with the CFTC on crypto regulations? The Securities and Exchange Commission and the Commodity Futures Trading Commission are moving to enhance their coordination on cryptocurrency regulations. They plan to do this through a memorandum of understanding, which aims to set clear rules that can support the growth of the industry.
The Chair of the SEC has indicated a strong expectation that crypto legislation will pass within this year. However, he also noted that progress can be made even without new legislation, suggesting that existing regulatory powers can be utilized effectively.
In a joint effort to advance this framework, the SEC and CFTC leaders will host an event on January 29 that will focus on harmonizing regulations. This will not only support US leadership in the digital asset sector but also clarify which agency governs specific cryptocurrency assets. The event will feature discussions and a fireside chat, which will be available for viewing live online from CFTC headquarters.
Recently, a key crypto market structure bill made its way through the Senate Agriculture Committee, passing with a narrow 12-11 vote. Despite this progress, the legislation faces hurdles due to partisan disagreements and outstanding issues that must be resolved in the Senate Banking Committee for it to move forward effectively.
Coinbase, the largest cryptocurrency exchange in the United States, has recently pulled its support for the legislation due to conflicts with banks concerning stablecoin reward practices. Investors are closely watching as there are growing concerns that Congress may not finalize any legislation before the upcoming November midterm elections. Such a scenario would present challenges for the current administration, which has sought to actively support the cryptocurrency industry and stimulate growth in the digital assets arena.