US Congressman Patrick McHenry creates hearing for the structure of the crypto market

One of the controversial topics in the crypto space is regulation. While the community is calling for clarity in the regulatory framework, regulators such as the US Securities and Exchange Commission are acting against them without defining the dos and don’ts.

This situation has led to many crypto companies in the US seek expansion at sea in crypto-friendly countries. But a recent development suggests that the regulators have taken up the requirement for clarity.

Chairman of the House Finance Committee, Patrick McHenryannounced a series of joint hearings to address the structure of the US digital asset market.

Committee ready to make clear rules for cryptoassets: McHenry

In accordance the joint announcementmany top figures in the US Congress have come together to ensure a clearer regulatory framework for the US digital asset space.

These include Congressman McHenry, Glenn Thompson, Chair of the House Agriculture Committee, French Hill, Chair of the Digital Assets, Financial Technology & Inclusion Subcommittee, and Commodity Markets Digital Assets and Rural Development Subcommittee Chair, Dusty Johnson.

The statement revealed that the committees would jointly adopt and sign into law clear rules for the digital asset ecosystem. It continued that they must strike an appropriate balance between protecting consumers and encouraging responsible innovation.

In another speech during the Consensus event on April 28, the chairman of the House Financial Services Committee said, McHenry, shed more light on the upcoming hearings in May. According to the chairman, the hearings will mark the first comprehensive view on regulation of digital assets from the house committee.

Furthermore, McHenry revealed that they would report a bill in the next two months that deals with the “capital raising process for digital assets.” The bill will also cover the proper transition process for a product to move from the securities regime to the commodities, while preserving its rights to other products that do not belong to either regime.

McHenry Mentions Support for Senator Lummis Bipartisan Bill

Most importantly, The HFSC chairman reiterated that the hearings aim to establish a bill to provide the regulatory clarity the crypto sector requires. But it will support Sen. Lummis and Kirsten Gillibrand-led bipartisan legislation.

Remember that the Lummis-Billibrand bill “Responsible Financial Innovation Act” was introduced in the United States Senate in June 2022. The bill covered many aspects of digital asset operations, including stablecoin regulation, crypto taxation, and the jurisdictions of the Commodities Futures Trading Commission (CFTC) and the SEC.

However, there have been delays in passing the bill due to the attitudes of other senators who are not well-versed in crypto-related operations. Notably, the senators have since made some revisions to the bill and will soon release the final draft.

According to McHenry, the Responsible Financial Innovation Act contributions are from the Senate, while the upcoming bill is from Congress.

Featured image/Pexels and Chart/Tradingview