US Industry Watchdogs Warn Against Crypto Market Structure Draft Bill

The Proposed Digital Asset Market Structure Discussion Draft Bill

A coalition of American consumer advocacy organizations, including Americans for Financial Reform and the Center for Responsible Lending, have come together to oppose the proposed Digital Asset Market Structure Discussion Draft bill, which is currently under consideration by the United States House Financial Services Committee.

The groups allege that the crypto industry has been lobbying in favor of the bill, but has failed to provide any evidence of practical applications beyond speculative investment.

The organizations suggest that the crypto market is attempting to take advantage of the proposed legislation in order to gain an advantage in the industry. The bill is intended to create a regulatory framework for digital assets in the United States, with the U.S. Securities and Exchange Commission (SEC) taking a lead role in the oversight of the market.

Earlier, Cointelegraph reported that the House Financial Services Committee Chair, Representative Patrick McHenry, planned to hold a committee vote on the bill in July 2023.

In June 2023, the SEC initiated individual lawsuits against two of the most renowned crypto exchanges, Coinbase and Binance, renowned for their substantial trading volumes. Surprisingly, traders swiftly disregarded the news, with little effect on crypto market prices.

Contrary to broad demand, the regulatory authorities declared that Congress should support the current enforcement actions of the SEC as a means to “safeguard consumers.” In contrast, various jurisdictions in Europe and Asia are actively attempting to accommodate crypto businesses relocating away from the United States.

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