Legislators in the United States are advocating for more defined regulations on cryptocurrency, aiming to keep the $2.7 trillion crypto sector based in the country.
The U.S. Congress is witnessing a significant movement towards establishing regulatory clarity in the crypto space. On April 9, the House Financial Services Committee’s subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence conducted a hearing focused on crypto regulations. The objective was to identify methods for aligning the current U.S. securities laws with the realities of the digital landscape, particularly in relation to crypto assets.
During his address to the committee, Chairman of the House Financial Services Committee, French Hill, praised the group’s “bipartisan efforts to enhance clarity and stability” for crypto assets. He expressed hope for significant legislation to emerge by the end of 2025.
“It is our responsibility to build on that momentum and keep striving for a comprehensive regulatory framework that lays out clear guidelines for digital asset markets… I look forward to hearing from our witnesses today and collaborating with colleagues to push this forward this year,” Rep. French Hill
The committee recognizes the SEC’s role
While offering some criticism of the SEC, particularly under Gary Gensler’s leadership, committee members acknowledged the commission’s importance in the regulatory landscape. Subcommittee Chairman Bryan Steil indicated that the SEC would play a role in overseeing token offerings.
“At the same time, the Committee feels strongly that the U.S. Securities and Exchange Commission should have a presence in the digital asset ecosystem. For instance, we believe that issuers raising capital through the sale of new digital assets should come under SEC jurisdiction,” Rep. Bryan Steil
This would likely exclude memecoins, as under Gensler’s leadership, the SEC has determined that memecoins do not qualify as securities, arguing that they lack utility and resemble collectibles more than financial instruments.
The committee did encounter some pushback, particularly from Rep. Maxine Waters, who criticized her colleagues for appearing to favor Donald Trump’s cryptocurrency ventures, suggesting they enabled him to become the “crypto king.”
This hearing is part of the ongoing efforts to provide clarity on crypto assets within the U.S. For example, on May 22, the House approved the Financial Innovation and Technology for the 21st Century Act with bipartisan backing.