Biden's Regulators Urged to Work With Congress on Crypto Legislation

A number of U.S. lawmakers have urged regulators, including the Securities and Exchange Commission (SEC), to work with Congress on crypto regulation. “Chair Gensler’s regulation by enforcement is unlawful and does nothing to protect consumers. It’s time for Biden’s regulators to work with Congress to provide clear rules of the road and robust consumer protections through legislation,” said the House Financial Services Committee.

Lawmakers Urge Regulators to Work With Congress on Crypto Regulation

After the U.S. Court of Appeals for the District of Columbia Circuit ruled in favor of crypto asset manager Grayscale Investments against the U.S. Securities and Exchange Commission (SEC), a number of lawmakers have urged regulators to collaborate with Congress on cryptocurrency regulation.

On Tuesday, the Financial Services GOP posted on social media platform X:

Chair Gensler’s regulation by enforcement is unlawful and does nothing to protect consumers. It’s time for Biden’s regulators to work with Congress to provide clear rules of the road and robust consumer protections through legislation.

Congressman Patrick McHenry (R-NC), chairman of the House Committee on Financial Services, also posted on X: “SEC Chair Gary Gensler’s crusade against the digital asset ecosystem is falling apart under scrutiny from the courts.” Recently, a federal judge sided with Ripple Labs against the securities regulator in a case involving the offers and sales of XRP. The SEC has expressed its intent to appeal some parts of the ruling.

McHenry further stated that the SEC losing another battle in courts against crypto firms “is yet another example of why a comprehensive regulatory framework, like the FIT for the 21st Century Act, must be made law.” The House Financial Services Committee and the House Committee on Agriculture passed the Financial Innovation and Technology (FIT) for the 21st Century Act (H.R. 4763) in July.

The SEC and Chair Gary Gensler have been heavily criticized for taking an enforcement-centric approach to regulating the crypto industry.

Last week, Congressman Frank Lucas (R-OK) slammed the securities watchdog and Chair Gensler for taking a reckless approach to rulemaking. “Gary Gensler’s SEC is pursuing a reckless, rushed rulemaking agenda with inadequate economic analysis and limited public input — threatening to upend our capital markets,” he asserted.

Do you think the SEC and other regulators should work with Congress on crypto regulation? Let us know in the comments section below.

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