Congress Tells SEC & CFTC to Form a Joint Digital Asset Working Group to Promote Innovation
The legislation ‘Eliminate Barriers to Innovation Act of 2021’ is expected to bring clarity and transparency to the cryptocurrency industry.
Legislation has been introduced by Reps. Patrick McHenry (R-N.C.) and Stephen Lynch (D-Mass.) to create a digital asset working group.
Glenn Thompson (R-Pa.), Ted Budd (R-N.C.) and Warren Davidson (R-Ohio) are other co-sponsors of the bill that aims to bring clarification around crypto asset regulation in the US.
Introduced this week, the bill wants the two leading agencies that oversee digital asset markets in the US, Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC), along with key industry groups to jointly establish this working group. Amy Kim, chief policy officer at Chamber of Digital Commerce noted,
“As other countries continue to lead in the rapidly growing digital asset industry, now is the time for the United States to build and maintain clear and uniform regulatory framework across agencies to position this industry for success in the coming decades.”
It is no longer a choice to do nothing; as such, some congress members have introduced the ‘Eliminate Barriers to Innovation Act of 2021’ that will require key stakeholders, including industry representatives, to work together for a period of a year to resolve regulatory issues surrounding digital assets.
The group would have equal representation from both organizations along with representatives from a financial services institution, a fintech company, a small business or entrepreneur, an investor protection group; someone engaged in related academic research or advocacy, and an institution or organization supporting investment in historically-underserved businesses.
The legislation calls for the working group to deliver a report to both the agencies and relevant Congressional committees that provide recommendations to improve efficiency, transparency, availability, and efficacy of primary and secondary markets in digital assets and customer protection.
Also, to provide recommendations regarding establishing protocols concerning custody, private key management, cybersecurity, and business continuity relating to digital asset intermediaries.
The working group is further required to deliver a comprehensive analysis of developments in other countries and how those trends impact the US.
This legislation is expected to be important in bringing clarity and transparency to the cryptocurrency industry.