U.S. House of Reps Financial Committee Raises Concern Over SEC’s Rule Proposals on Cryptocurrencies

U.S. House of Reps Financial Committee Raises Concern Over SEC’s Rule Proposals on Cryptocurrencies.

The United States House of Reps’ Financial Services Committee GOP has expressed concern over two proposals made by the Securities and Exchange Commission (SEC) regarding crypto assets. 

According to a letter today addressed to the Chairman of the SEC, the committee is concerned about two rulemaking changes the SEC proposed and the implication of such rules to the cryptocurrency industry. 

Per the letter, the SEC, on January 26, 2022, and March 22, 2022, requested to adjust the definitions of “exchange” and “dealer,” respectively. 

The committee noted that if the SEC’s proposals are left unchecked, it could prompt the Securities and Exchange Commission to expand its jurisdiction “beyond its statutory authority to regulate market participants in the digital assets ecosystem.” 

The Financial Services Committee called on the U.S. Congress and SEC to approach the nascent technology from a balanced perspective that could enable the industry to meet its full potential while protecting investors, adding: 

“We do not need more regulatory ambiguity in the digital asset ecosystem.” 

Following concerns raised by the committee, the SEC has been mandated to provide a cost-benefit analysis of the proposed rulemaking on crypto investors and the specific harm the rule proposals want to address. 

The move comes as the SEC engages Ripple in a heated legal battle that has lasted for over a year. 

The SEC has seen several decisions go against the agency since the beginning of the lawsuit. The rules proposals are considered part of plots by the regulator to better equip themselves for future charges carried out against crypto-related entities.