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Coinbase, CFTC, and Others Testify in Congress Over Proposed Crypto Bill

United States legislators put forth a crypto bill to provide clear regulations for cryptocurrency, its users, and companies. The 162-page bill attempts to establish regulatory jurisdiction and definitions. However, it was also acknowledged that the bill would require extensive reviews. One is the House Agriculture Committee hearing on digital asset regulation today.

Coinbase and the CFTC are among those expected to testify in Congress. The event is titled “The Future of Digital Assets: Providing Clarity for Digital Asset Spot Markets”. The purpose of the meeting, as the title reveals, is to talk about the proposed crypto classification and each organization’s position on the proposed bill that tries to classify specific cryptos.

“I will be testifying tomorrow in front of the House Committee on Agriculture on the issues related to #digitalcommodityassets. Watch the hearing here,” wrote Rostin Behnam, CFTC chairman, on Twitter.

Coinbase’s Chief Legal Officer, Paul Grewal, revealed some of his thoughts on cryptocurrency regulation and what he will testify about. He stated that the US is missing out and that ignoring crypto will continue to cause the US market to fall behind as other markets capitalize on the opportunities that crypto provides. The rules that should be enacted should be those that will allow the industry to thrive and even offer solutions to international markets. He also mentioned that he will support the proposed cryptocurrency bill, which he sees as an important step toward the long-awaited regulatory solution.

Sharing his thoughts on his Twitter page, Grewal stated:

“We need a clear rulebook in the US to achieve the full promise of crypto. Until rules and laws are developed that reflect the realities of this new economic system, we cannot realize the full potential of making our financial system faster, fairer, and more affordable.”

Major Move towards Clear Crypto Regulatory Guidelines

The cryptocurrency market is riddled with inconsistencies, owing primarily to ambiguous regulations. Several legal disputes between regulators and cryptocurrency exchanges have occurred. The three-year-old XRP and SEC lawsuit, which is anticipated to be resolved this year, is a well-known example. The lawsuit against Binance that was filed this week is one recent example. The SEC claimed that the crypto company used BNB and BUSD as securities without registering them as such. The situation reveals Binance’s violations of security regulations and the general irregularities in classifying crypto assets according to the law and their intended use.

Providing clear regulatory guidelines for the crypto industry is an important step. With so many people owning and using cryptocurrency, such clear guidelines will be required to protect crypto users, guide crypto use, and help the industry grow healthily. Obviously, this move aligns with the desire of many major cryptocurrency exchanges, which have been the target of several lawsuits due to unclear regulatory stances.

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Coinbase, CFTC, and Others Testify in Congress Over Proposed Crypto Bill