US industry authorities against crypto-friendly bill

A coalition of industry authorities in the United States is banding together to express their disapproval of a recently proposed draft bill regarding the cryptocurrency industry.

The allied watchdogs are opposed to the proposed bill which sets to establish a crypto market structure in the country. They have stated that the cryptocurrency industry has not managed to present any tangible use cases other than speculative investment. As a result, the authorities are sceptical of any practical applications that the crypto industry might offer. In an extensive letter towards the committee, organisations including Americans for Financial Reform and the Center for Responsible Lending have asserted that investors in the cryptocurrency industry are advocating for the committee’s proposal, commonly referred to as the Digital Asset Market Structure Discussion Draft bill. The letter accused the cryptocurrency community and market stakeholders of looking for crypto-friendly legislation with crypto “innovation” as the driving rationale:

“Of particular concern is the proposed bill’s provision that would alter the SEC’s evaluation of regulatory rulemaking in all securities markets, compelling the agency to assess new rules based on the criterion of ‘innovation.‘”

The Digital Asset Market Structure Discussion Draft bill

The reason for the bill is to establish some sort of a standard as a regulatory framework in the United States. This includes defined clear guidelines and rules for the industry and role players in cryptocurrency. The main aim behind the draft is focused on how the US Securities and Exchange Commission (SEC) would oversee the regulatory framework and be involved in the industry.

This comes following an effort the SEC has made to tackle securities issues it sees in the cryptocurrency space. Over the last month, the SEC has slapped two cryptocurrency exchanges with lawsuits related to securities law. Both Coinbase and Binance have been under legal investigation by the SEC.