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Congressmen invites Coinbase, Robinhood, CFTC to testify crypto bill

On June 6, Coinbase, Robinhood, and executives from the US commodities regulator will testify before Congress to talk about a recently introduced crypto policy.

The three organisations will discuss the opinions of their community regarding a proposed law that might classify some digital currencies as digital commodities.

In an announcement on June 5, Coinbase Chief Legal Officer Paul Grewal said, “Tomorrow, I have the honour of speaking on Capitol Hill in front of the House Committee on Agriculture to express Coinbase’s thoughts on the Virtual Asset Market Structure Discussion Draught issued last week.”

Coinbase Robinhood and CFTC to testify crypto bill
Coinbase Robinhood and CFTC to testify crypto bill

Chris Giancarlo, Dan Berkvitz, and Walt Lukken, the creator of FIAconnect, are three further witnesses who have been summoned to provide the testimony.

Grewal provided a summary of the key points of his own evidence in a post on Twitter on June 5.

“The United States is lagging. We can’t afford to overlook the cryptocurrency market while other markets benefit from our absence by creating rules and regulations that allow the sector to flourish and run the danger of offshoring employment, investment, and technological leadership, Grewal stated. 

Grewal continued and said, “To realise the full potential of cryptocurrency, the United States needs a clear set of rules. We cannot fully realise the potential of making our financial system quicker, fairer, and more accessible until laws and regulations are adopted that match the realities of this new economic system.”

Grewal will also publicly state that he agrees with the planned crypto legislation, calling it “a solid move towards establishing long-overdue regulatory clarity.”

Republican congressmen Patrick McHenry and Glenn Thompson are pushing for a “statutory framework for virtual asset legislation meant to offer clarity, fill gaps in regulation and promote innovation while providing adequate consumer protections,” according to the release of the Digital Asset Market Structure Discussion Draught on June 2.

Coinbase Robinhood and CFTC to testify crypto bill
Coinbase Robinhood and CFTC to testify crypto bill

Grewal praised the bill as a “thoughtful effort” and “a major step forward,” urging lawmakers “from both sides of the party to work collaboratively and respond as soon as possible.”

The Discussion bill acknowledges the unique features and prospects of cryptocurrency while also addressing the CFTC and SEC’s respective areas of jurisdiction. Additionally, it would give Congress the leadership and authority that is desperately required for our financial system to develop.

The actions would follow a day after rival cryptocurrency exchange Binance was hit with 13 accusations by the U.S. SEC and appear to support Coinbase’s long-standing call for more specific regulatory parameters for the crypto sector.

As stated in the summary of his evidence, Grewal contends that “virtual assets do not generally fit into one existing legislative box: some are commodities, some are securities, some are neither, and some simply don’t map onto existing categories.”

Over 20% of Americans now own and utilise cryptocurrency, thus Grewal said, “We require a system of regulation that will safeguard users and allow the vital purposes of this revolutionary technology to keep evolving and flourish.”

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