The new bill, introduced by Rep. Patrick McHenry (R-NC), would require the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to establish a new joint working group on cryptocurrencies, with the remit to support innovation through effective regulations. Governments worldwide have been working on crypto regulations.
The group would be formed of representatives from both regulators.
According to the proposed bill, the group would be formed of representatives from both regulators, SEC and CFTC, and many non-government stakeholders, including firms working with and researching new emerging technologies. The working group would also be expected to submit its analysis on the US regulatory framework for digital assets within its first year of establishment. After that time, the group would be expected to disband. The law also leaves scope for the two commissions to extend the reporting period for another year by joint agreement, which would require the submission of an amended report.
SEC stated it observed inadequate AML regulations with crypto.
Earlier, the US Securities and Exchange Commission (SEC) released an 8-page document detailing the agency’s framework to examine digital asset investments. Regulators worldwide have shown concern over crypto regulations in recent times as the industry continues to gain mainstream exposure. If the bill is passed into law, the group would be convened under the statute at the earliest opportunity. SEC also stated that it “observed inadequate Anti Money Laundering procedures, controls, and documentation” due to the decentralized nature of several cryptocurrencies. Recently, regulators worldwide have expressed their concern over the growing crypto industry and the massive winning rally of the leading cryptocurrency bitcoin.