Jump to content

Big week in DC for crypto policy


Recommended Posts

1) First is the hearing on legislation to give the CFTC jurisdiction to regulate digital commodities. While a meaningful piece of legislation, questions still remain about the definitions (which are always tough) and application to DeFi.

2) In a welcomed departure from most hearings, witnesses will include nearly all stakeholders (regulators, industry, think tanks, and academics). Each with their own view and presenting to a committee that isn't as in the weeds as their Senate Banking counterparts. Worth watching

3) The other major hearing on the 15th is with SEC Chair Gensler in front of. This is a typical oversight hearing so everything is on the table, including crypto. Since last appearing in front of the committee, the SEC has levied several enforcement actions.

4) Topics likely to be covered include criticism of the SEC's regulation by enforcement approach, SEC push to have exchanges register, failure to approve a bitcoin spot ETF, and recent efforts/comments to bring stablecoins and DeFi under SEC purview via rulemaking.

5) Speaking of stablecoins, despite what most of the outlets are reporting, there isn't much of an update on the rumored stablecoin bill...yet. Time is running out and each day there isn't an agreement, the chances this is a 2023 play get higher.

6) A few reports from the White House's executive order on crypto have been released to the public (most notably on crypto mining), but it is likely more will be released in the coming days. This shouldn't scare folks though as many of these studies are just that...studies.

7) But studies are a great way to tee up legislation in the future. Whether the results are good or bad, one thing is for sure, 2023 will be important as much of the busy work this week is laying out the chess pieces for a pivotal year in crypto legislation/regulation.

8) With all these events in DC occurring, keep in mind we are nearing election day and most Members will try to find any opportunity to distinguish themselves from the opposition. This means dense policy topics get sidelined for partisan messaging so this slows down process.

9) Finally, keep in mind Congress only has a few weeks left to legislate this year. As we see developments with the DCCPA and the stablecoin bill, understand these are big bills. Even with bipartisan support, big bills of any kind are hard to move (healthcare, tax, crypto, etc.)

10) Does that mean these bills are meaningless? No, the opposite. Congress is getting CLOSE to being proactive on crypto, rather than reactive to the regulators. It takes a lot of education from stakeholders, but what was once regulator driven is now moving to Congress decides.


Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Create New...