US Lawmaker Demands Information from Treasury and SEC on Crypto Market Structure Legislation

Congresswoman Maxine Waters Urges Federal Regulatory Agencies to Comment on Digital Assets

Congresswoman Maxine Waters of California, the highest-ranking member of the U.S. House Financial Services Committee, has urged the heads of federal regulatory agencies to comment on a suggested blueprint for digital assets.

On June 23, Waters sent separate letters to Treasury Secretary Janet Yellen and SEC Chair Gary Gensler, inquiring about the potential effects of the “Digital Asset Market Structure” bill. This bill, put forward by Republican legislators on June 1, seeks to create a unified system for digital assets in the US, bridging the regulatory differences between the SEC and Commodity Futures Trading Commission.

In the letters, Waters inquired of Gensler as to how the proposed framework, if adopted, might impact the SEC’s authority in safeguarding crypto investors. She posed a similar query to Yellen, while additionally asking that the Treasury Secretary consider any possible clashes with the Financial Stability Oversight Council’s present directives on digital assets as per the Presidential Executive Order on crypto from Joe Biden.

SEC Chair Gary Gensler’s Authority in Cryptocurrency Regulation

When considering a crypto regulatory framework, a US lawmaker has referenced SEC lawsuits.

The debate on how policymakers should handle digital assets persists in the U.S., with lawsuits between regulators and private entities and criminal proceedings against those accused of fraud. Former FTX CEO Sam Bankman-Fried is likely to be charged with 13 counts divided between two trials beginning in December 2023 and March 2024. Crypto exchanges Binance and Coinbase are also being sued by the SEC for alleged unregistered securities offerings.

Waters set June 30 as the deadline for Yellen and Gensler to respond and indicated that they should both be ready to answer questions from the committee if necessary.

Does SEC Chair Gary Gensler have the ultimate authority when it comes to cryptocurrency regulation?