US Congress Members Urge SEC and CFTC to Start Dialogue with Crypto Market Participants

US Congress Members Urge SEC and CFTC to Start Dialogue with Crypto Market Participants

Congressman Glenn “GT” Thompson has taken to Twitter to share that he and Congressman Patrick McHenry have sent a letter to the Securities and Exchange Commission and to the Commodities Futures Trading Commission to urge them to start a constructive dialogue with the nascent cryptocurrency industry rather than to stifle it with heavy regulation.

The letter addresses SEC chairman Gary Gensler and the acting chairman of the CFTC picked by President Biden – Rostin Gehnam. They are urged to set up a joint working group on digital assets.

Today I sent a letter to @SECgov & @CFTC with my colleague @PatrickMcHenry urging the agencies to establish a joint working group on digital assets.⁰This is an important step to ensure much-needed clarity in the industry for market participants.⁰More👇https://t.co/8RVb3xW89X pic.twitter.com/3JqtwLPgqa— Glenn 'GT' Thompson (@CongressmanGT) August 16, 2021

“Stop regulating innovation out of the US”

In the letter, the Thompson and McHenry stated that at the moment the US stands at a pivotal point regarding the future of the local digital asset ecosystem and how the regulatory policies for it will be shaped.

The Congressmen mentioned that the recent statements of the SEC chair Gary Gensler and Senator Warren may be harmful for the innovative crypto industry and are likely to push crypto-related innovations and new jobs out of the US.

Instead, the authors of the letter suggested that a constructive and active dialogue with crypto market players and regulators must be started.

“Rather than regulate innovation and job creation out of this country, we should promote an active dialogue between regulators and market participants.”

The SEC and CFTC should start negotiating with crypto market

In early March, a bipartisan H.R. 1602, the Eliminate Barriers to Innovation Act of 2021 was passed in the US Congress.

It requires that the SEC and the CFTC representatives create a working group that would create an active and a collaborative dialogue with cryptocurrency companies.

Apart from crypto market participants, it would include organizations that protects the interests of investors, regulators, academic research organizations, stakeholders, etc.

The authors of the letter state that while this bill was passed and the working group is to be created, SEC and the CFTC can do the same by themselves and start cooperating with crypto companies and other market participants as soon as possible to figure out the best regulation policies together. So that the innovative industry of blockchain and crypto begin prospering in the US and not push it out of the country with Draconian laws.

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