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Crypto regulation has been at the forefront of many Congress-led discussions for the past several years, but while democrats have spent a long time talking about it, they haven’t acted, and quite frankly, given the fact that so many of them have accepted donations from entities like Sam Bankman-Fried of FTX notoriety, we probably don’t want them getting involved in regulation in the first place.
Is Regulation Finally Coming?
It now looks like republicans are taking it upon themselves to ensure rules are in place to ensure protection for crypto investors and traders. Typical… After years of democrat discussions, it takes republicans to get the job done.
Several conservative members of the House Financial Services Committee have announced that the crypto regulation they’re planning will not happen all at once. Rather, several of them are presently drafting smaller bills that will eventually lead to a whole string of protections investors can enjoy. They agree incremental change is best when ensuring the safety of the digital currency realm.
Representative French Hill of Arkansas stated in an interview:
We’re working on a comprehensive regulatory framework that goes beyond the bills. We’re going to spend April in a significant effort on listening to stakeholders in the digital assets arena [and] considering other legislative proposals, so that’ll be our principal work plan for the next two months.
Coinbase chief legal officer Paul Grewal also threw his two cents into the mix. He’s hoping the regulation will embrace the innovation and growth of the space rather than try to limit it. He said:
Crypto is a technology that makes the existing financial system work better, but the benefits, such as enabling faster and cheaper payments or settling in real time, require laws and rules that reflect a new way of thinking and an eye toward progress. We need policymakers to work together to develop a comprehensive framework that provides pathways for customers to access both digital asset commodities and digital asset securities in the U.S. Europe, the U.K., Australia, and Singapore, just to name a few, are putting in place regulatory frameworks that are creating high standards for crypto. It is truly a race to the top, and the U.S. is already behind.
FTX to Blame?
While crypto regulation has long been called for, it looks like many members of Congress are getting serious about it now that an exchange like FTX has taken a deep dive into fraud and bankruptcy puddles. It has been alleged that SBF – the man behind the company – utilized customer funds to invest in luxury Bahamian real estate and pay off loans taken out by his other company Alameda Research.
He is now awaiting trial at his parents’ house in Northern California after being arrested early in the year.