House GOP plans Crypto regulation overhaul

House GOP plans Crypto regulation overhaul

As House Republicans work to alter monitoring of the rising class asset, cryptocurrency regulation might undergo a big revision. Republicans on the House Financial Services Committee have recently put forth a number of smaller regulation proposals. Rep. French Hill, the U.S. representative for Arkansas’s 2nd congressional district since 2015, chairman of the Digital Assets Subcommittee led the panel’s digital assets subcommittee. He said in an interview that the longer-term plan is to go bigger and that they want to go much farther in the coming months.

“We’re working on a comprehensive regulatory framework that goes beyond the bills,” Hill said. “We’re going to spend March and April in a significant effort on listening to stakeholders in the digital assets arena [and] considering other legislative proposals. So that’ll be our principal work plan for the next two months.”

There isn’t much detail on what the committee intends to suggest, but it comes as federal banking and markets regulators increase their enforcement of traditional financial norms in the cryptocurrency business. Companies dealing in digital assets are urging Congress to develop a distinct set of rules for cryptocurrencies, as has been done in other places such as the European Union.

On Thursday, information from Coinbase Chief Legal Officer Paul Grewal was delivered. He advocated for a regulatory structure that will encourage the business while safeguarding customers’ interests. “Europe, the U.K., Australia and Singapore — just to name a few — are putting in place regulatory frameworks that are creating high standards for crypto,” he added. “It is truly a race to the top, and the U.S. is already behind.”

In testimony this week on Capitol Hill, Federal Reserve Chair Jerome Powell proposed that the House step in and regulate the market. Hill confronted him on the subject on Wednesday. He questioned Powell if a digital asset framework in the United States would allow banks, brokers, and custodians to understand how to engage in the market securely. Powell replied that it is necessary to have a strong “legal framework around digital activities”. He also claimed that it is something that can be done only by Congress. 

Proposals in the bills include expressing legislative support for blockchain technology and digital assets, exempting blockchain developers from some reporting and licencing requirements, and reducing tax reporting requirements for crypto companies. At a committee markup scheduled for March 28, the proposal might be voted on.