- A crypto framework is to be tabled in Congress next month
- Patrick McHenry, Chairman of the House Financial Services Committee, wants the framework in place
- Its passage is likely to be rocky, however, given that opponents will be asked to vote
The pro-crypto US Representative Patrick McHenry, Chairman of the House Financial Services Committee, yesterday announced his intention to hold a committee vote on a comprehensive bill aimed at establishing a regulatory framework for cryptocurrency products. McHenry plans to present the bill to the panel for consideration when lawmakers return from recess on July 11, hoping to set a more positive course for crypto in the country rather than simply allowing regulators to make it impossible to buy, sell and use.
McHenry Wants Regulation Not Extermination
McHenry has been spearheading a Republican-led initiative in Congress to pass a bill that provides clear guidelines for the cryptocurrency industry. This is in opposition to the likes of Elizabeth Warren who see no use for crypto or future in it and would like it banned outright.
A discussion draft, co-authored by McHenry and others, was recently proposed to outline the responsibilities of regulatory bodies in overseeing crypto products. The draft also includes provisions for crypto companies and exchanges to register with the relevant agencies, establishing a pathway for compliance.
Congress has been under pressure from crypto firms to provide clear guidelines, especially due to the Securities and Exchange Commission’s (SEC) strict stance on categorizing most major crypto products as securities and taking legal action against major exchanges.
Opponents Will be Queuing Round the Block
However, the fate of the draft measure is uncertain. Democrats serving on the panel have expressed their willingness to consider the proposed legislation but have raised concerns. Representative Maxine Waters, the committee’s leading Democrat, expressed her apprehension on Tuesday, expressing worry that granting provisional registration to crypto exchanges could potentially facilitate misconduct by bad actors, while the likes of Warren have taken an even more defiant tone, threatening its progress.
Indeed, if April’s bipartisan stablecoin bill is anything to go by, McHenry might as well just give up now.