Posted 9 months ago | by Catoshi Nakamoto

Congressman Glenn “GT” Thompson (R-PA) shared a letter he wrote to the Commodities Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC) on Twitter. The letter was co-written along with Congressman Patrick McHenry (R-NC), urging both regulatory agencies to open dialogue with leaders in the cryptocurrency industry and other industries rather than stifle innovation with oppressive swift regulation.

AdobeStock 115630468 Congressmen Urge SEC And CFTC Working Group Telling Agencies "Stop Regulating Innovation Out Of The U.S"

The letter addresses SEC chairman Gary Gensler and the current acting chairman of the CFTC appointed by Joe Biden earlier this year, Rostin Behnam. The congressmen suggested that both regulatory leaders organize a joint working group to decide regulations for the digital assets market.

In the letter, Thompson and McHenry pronounced that the U.S. stands at a digital crossroads regarding the future of digital assets in the U.S. They added that any such regulatory policy would shape the industry’s future here in America, while other countries get ahead of Americans due to the stifling of innovative tech here at home.

The congressmen additionally stated that recent statements by SEC chair Gary Gensler and Senator Warren are concerning regarding the future of the innovative crypto industry and are likely to push crypto-related innovations and new jobs out of the U.S. As Bitboy Crypto reported, McHenry recently criticized the U.S. Securities and Exchange Commission (SEC) and its commission head Gary Gensler for asking for further powers over crypto, calling the attempt “a blatant power grab that will hurt American innovation.”

Former Goldman Sachs Gensler wrote a letter to Warren in response to her own July 7th letter addressed to Gensler inquiring about cryptocurrency regulation. At the time, Warren called for the SEC to use its full authority to address risks in the cryptocurrency market.

In a recent letter, Gensler wrote to Warren: “I believe we need additional authorities to prevent transactions, products, and platforms from falling between regulatory cracks. We also need more resources to protect investors in this growing and volatile sector.”

The joint letter by the two congressmen argues that productive and constructive conversations with crypto market players and regulators should be initiated as a means to educate Congress and the regulators themselves. So they can better understand the technology underlying and behind cryptocurrency, i.e., blockchain, smart contracts, and other financial tech.

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

In early March, the bipartisan bill H.R. 1602, introduced by McHenry or the Eliminate Barriers to Innovation Act of 2021, passed the House of Representatives on April 20th. However, McHenry’s bill is still pending Senate action.

The bipartisan bill aims to create a digital asset working group which would include the CFTC and the SEC, as well as people in the crypto industry “to bring much needed regulatory clarity to the digital asset ecosystem.” According to the bill, in addition to crypto market participants, it would include organizations that protect investors, regulators, academic research organizations, stakeholders, and others.

McHenry isn’t the only government official to criticize the SEC. For example, CFTC commissioner Brian Quintenz previously tweeted that the U.S. Securities and Exchange Commission (SEC) does not have jurisdiction over “pure commodities or their trading venues,” including “crypto assets.”

This followed a comment by U.S. SEC Chairman Gary Gensler, who stated that stock tokens and “stable value tokens backed by securities” qualify as securities, implying they must be registered and abide by existing federal law. Quintenz recently made further comments about the SEC not having jurisdiction over cryptocurrency when attorney Jeremy Hogan with Hogan & Hogan law firm asked U.S. Security and Exchange Commission (SEC) boss Gary Gensler on Twitter, whether or not Ethereum (ETH) was a security, as Bitboy Crypto reported.

Although Hogan didn’t get a response from Gensler, Quintenz did respond in his typical controversial demeanor. Quintenz stated once again that ETH was a commodity expressing “a futures contract on a security is in both the SEC’s and CFTC’s jurisdiction. A futures contract on a pure commodity is only in the CFTC’s jurisdiction.” He added, “There is currently a futures contract on ETH. It is only under the CFTC’s purview which makes ETH a non-security commodity.”

Quintenz’s fiery statements against the SEC seem to illustrate a bit of a turf war going on between the SEC and the CFTC when it comes to regulating the digital asset market with both using crypto as a game of tug of war. Thompson and McHenry want the regulators to work together and have a legitimate serious discussion about crypto assets to explore the possibilities and innovations Americans could be missing out on if the industry is heavily regulated.

Bitcoin is currently trading at [FIAT: $45,863.26] DOWN -1.2% in the last 24 hours according to Coingecko at the time of this report.

About Catoshi Nakamoto

c6ea0c3794492f30883e516d39b2597a?s=90&d=blank&r=g Congressmen Urge SEC And CFTC Working Group Telling Agencies "Stop Regulating Innovation Out Of The U.S"Activist/Journalist, former writer - We Are Change, The Mind Unleashed, Coinivore, others. Currently writing for - Activist Post and Bitboy Crypto. Not Right or Left Apolitical. I Care About Truths (CATS.) Cryptocurrency enthusiast, I mined and lost 100+ BTC in 2010-2011. I work with - Bitboy, SoMee, CEEK, Presearch, and W3BT aka FMW Media Group. Friend of mostly everyone who isn't a dick. Just A Cool Cat.