Biden’s Regulators Urged to Work With Congress on Crypto Regulation

Biden’s Regulators Urged to Work With Congress on Crypto Regulation – Following a favorable ruling by the U.S. Court of Appeals for the District of Columbia Circuit in favor of crypto asset manager Grayscale Investments against the U.S. Securities and Exchange Commission (SEC), several U.S. lawmakers have called for regulators, including the SEC, to cooperate with Congress in crafting cryptocurrency regulations. 

The House Financial Services Committee emphasized the need for a collaborative approach, stating, Chair Gensler’s regulation by enforcement is unlawful and does nothing to protect consumers. It’s time for Biden’s regulators to work with Congress to provide clear rules of the road and robust consumer protections through legislation.

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On Tuesday, the Financial Services GOP posted on social media platform X: “Chair Gensler’s regulation by enforcement is unlawful and does nothing to protect consumers. It’s time for Biden’s regulators to work with Congress to provide clear rules of the road and robust consumer protections through legislation.”

Congressman Patrick McHenry (R-NC), chairman of the House Committee on Financial Services, also posted on X: “SEC Chair Gary Gensler’s crusade against the digital asset ecosystem is falling apart under scrutiny from the courts.” In a recent development, a federal judge ruled in favor of Ripple Labs in a case concerning the offerings and sales of XRP, against the securities regulator. 

The SEC has indicated its intention to appeal certain aspects of this ruling. McHenry further stated that the SEC losing another battle in courts against crypto firms “is yet another example of why a comprehensive regulatory framework, like the FIT for the 21st Century Act, must be made law.” In July, the Financial Innovation and Technology (FIT) for the 21st Century Act (H.R. 4763) received approval from the House Financial Services Committee and the House Committee on Agriculture.

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Criticism has been directed at the SEC and Chair Gary Gensler for their enforcement-focused strategy in regulating the cryptocurrency sector. Recently, Congressman Frank Lucas (R-OK) strongly criticized the securities watchdog and Chair Gensler for what he perceives as a hasty and imprudent approach to rulemaking. “Gary Gensler’s SEC is pursuing a reckless, rushed rulemaking agenda with inadequate economic analysis and limited public input — threatening to upend our capital markets,” he asserted.

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