The U.S. Securities and Exchange Commission (SEC), one of the most powerful financial watchdogs, is under pressure from Congress to develop effective regulations for the cryptocurrency industry. This shift occurs after the commission apparently gained a partial victory in the summary judgment stage of the XRP lawsuit.
French Hill and Dusty Johnson, members of the US Congress, wrote to Gary Gensler, chair of the US Securities and Exchange Commission, highlighting the need of making effective regulations for digital assets. All market participants must adhere to established rules, it was added.
The letter stated that the House Committee on Financial Services and the House Committee on Agriculture saw the development of extensive regulations as a top priority. Promoting market expansion and technology is crucial for the nation.
It was emphasized that over the previous four years, the committees had more than 15 hearings on the topic of digital asset laws. This featured a combined hearing of the two committees, where the inadequacies in the law were discussed.
On the other hand, Congress works methodically to close regulatory discrepancies the SEC prefers to use sanctions to control the market. It further stated that the commission is attempting to regulate cryptocurrency intermediaries through a number of rulemaking and staff initiatives.
In the past 24 hours, two letters have been received to the SEC chair, according to Fox Business Journalist Eleanor Terrett.
The intention is to stop the Commission from regulating cryptocurrency through enforcement. Rep. Ritchie Torres has already spoken with Gary Gensler on the same issues.
According to Republicans on the U.S. House Committee on Financial Services, it is now crucial for the SEC chair to collaborate with Congress in order to guarantee that users of digital assets are safeguarded after the XRP case verdict.
