Representative Maxine Waters, a Democrat from California, has set a one-week deadline for US regulators to assess the potential implications and scope of the latest cryptocurrency bill proposed by Republicans.
In letters addressed to the US Treasury Department and the Securities and Exchange Commission (SEC) on June 23, Waters requested a thorough evaluation of the Market Structure Bill, a discussion draft presented by Republican Committee leaders Patrick McHenry of North Carolina and Glenn Thompson of Pennsylvania.
Waters seeks insights into how the bill would impact the roles of the SEC and Treasury, the efficacy of the proposed legislation in safeguarding investors, and whether its provisions pose any risks to the stability of financial markets.
“If there are recommendations or changes to existing law outside the scope of the bill that you believe would protect investors within the digital assets space, I would welcome those views as well,” Waters said in her letter to SEC Chair Gary Gensler.
In addition to requesting a response from both agencies by Friday, Representative Waters also called for Securities and Exchange Commission (SEC) Chair Gary Gensler and Treasury Secretary Janet Yellen to be ready to provide lawmakers with a briefing on their findings.
This action from Waters follows growing concerns expressed by her and fellow House Democrats regarding the Republican agenda and their stance on cryptocurrency regulation.
“I have some initial concerns I’d like to discuss today,” Waters said during a hearing earlier this month to discuss the legislation. “For starters, I am particularly worried that the Republican bill would allow crypto firms that are currently being sued for violating our securities laws to continue doing business through provisional registration.”
The Republican draft legislation aims to expand the jurisdiction of the Commodity Futures Trading Commission (CFTC) to include oversight of cryptocurrency commodity spot markets, an area currently outside its purview. Presently, the CFTC regulates derivatives related to Bitcoin and ether.
In contrast, Representative Waters has consistently asserted that the Securities and Exchange Commission (SEC) possesses the necessary expertise to provide guidance on cryptocurrencies.
During a hearing, Waters quoted SEC Chair Gensler, stating, “The door is always open for crypto companies to register with the SEC.” Waters’ stance highlights her belief that the SEC is well-positioned to handle regulatory matters pertaining to the crypto industry.
Plus, the “securities laws — which have worked for every other industry for 90 years — can also work for crypto firms,” she said.
