US Congress mounts pressure on SEC and CFTC to form a joint team for crypto affairs

Members of the US House of Representatives have forwarded a petition to the heads of the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), urging them to work with crypto users to ensure coherence and transparency.

Representative Glenn Thompson confirmed in a tweet on Monday that he and Patrick McHenry had sent a letter to the CFTC and SEC, urging the agencies to establish a joint working group on digital assets.

The duo asked SEC’s Chair Gary Gensler and acting CFTC Chair Rostin Behnam to “promote an active dialogue” between federal regulators and investors in the crypto market. According to the letter:

A working group on digital assets would enable both the SEC and CFTC to explore how to effectively use their current jurisdiction cooperatively […] such a working group can foster transparent engagement with innovators in the digital asset ecosystem. As Congress contemplates additional legislation to address regulatory gaps, this work could provide us with additional information and clarity as we make these important policy decisions.

Both agencies were enjoined to go ahead and form the joint working group rather than waiting for external approval. Congress was given 90 days by the Eliminate Barriers to Innovation Act (H.R. 1602), to set up the aforementioned working group in partnership with the SEC, CFTC, and the crypto industry.

Notwithstanding, the bill has been referred to the Committee on Banking, Housing, and Urban Affairs in the Senate for further deliberation.

Currently, the SEC, CFTC, and Financial Crimes Enforcement Network handle digital asset regulation in the country, but with varying jurisdictional rights. This has led to a disjointed system that companies must navigate to operate legally.