Cryptocurrency and Blockchain Rules Should Be The Congress’ Focus, Key Lawmaker Affirms
Representative Bill Huizenga, a Michigan Republican, a key member of the House Financial Services Committee intends to see lawmakers focusing on making the “muddied and fairly opaque” rules for the markets of digital trading, exchanges and Initial Coin Offerings (ICOs) clearer.
According to the Republican, the Congress needs to work with regulators to ensure that the new investors in this area are protected from scams and any possible harm or legislative loophole. According to him, agencies like the Securities and Exchange commission (SEC) or the Commodity Futures Trading Commission (CFTC) are important because they can regulate these markets.
At the moment, these institutions are already working at their respective fields and they could oversee these new markets with similar rules that they use to oversee stocks, for instance.
Huizenga believes that one of the most important concerns is that the lawmakers are still figuring how to classify the digital currencies and they might be one thing or another, or even something in between, so it can be really hard to regulate them.
At the same time, members of the government and its institutions are focusing on scams tied to crypto offerings and trying to access all the potential dangers to investors. At the moment there is a consensus between the two parties that something should be done to keep this market more transparent than it actually is. However, the parties do not seem to agree on which measures should be taken.
Huizenga Intends To Address Questions Next Year
According to Huizenga, which is leading the Financial Services subcommittee at the moment, if the becomes the chairman next year, he would transform this into a top priority to solve this problem as soon as possible.
Other topics that he would address are US housing finance and the future of both Fannie Mae and Freddie Mac, two mortgage market giants that have been under federal jurisdiction since the crisis of 2008.
The midterm elections are still some time away from now but Huizenga and other lawmakers are already looking for a chance to replace Jeb Hensarling, the head of the panel responsible for overseeing Wall Street banks and the financial industry, which holds a very powerful position in the Congress.
At the moment, one of the main candidates to be the next chairman is Representative Patrick McHenry from North Carolina. However, he is expected to try a position elsewhere, too, so there might be an opening if he does not compete as the Republican frontrunner.
The main candidate from the Democrats to take control of the position is Maxine Waters from California. According to Huizenga, she would turn the committee into a pre-impeachment trial, so he does not believe that he would be a good choice.