{"id":24641,"date":"2023-07-18T03:45:00","date_gmt":"2023-07-18T03:45:00","guid":{"rendered":"https:\/\/icoinmarket.com\/us-stablecoin-bill-hits-pause-new-delay-sparks-criticism\/"},"modified":"2023-07-18T03:45:00","modified_gmt":"2023-07-18T03:45:00","slug":"us-stablecoin-bill-hits-pause-new-delay-sparks-criticism","status":"publish","type":"post","link":"https:\/\/icoinmarket.com\/us-stablecoin-bill-hits-pause-new-delay-sparks-criticism\/","title":{"rendered":"US Stablecoin Bill Hits Pause: New Delay Sparks Criticism"},"content":{"rendered":"
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The House Financial Services Committee\u2019s decision to delay a vote on stablecoin and crypto trading legislation by a week has caused a stir. <\/p>\n
Previously scheduled for July 17, the rescheduling to July 26 marks another chapter in the United States\u2019 complex stance on crypto regulation.<\/p>\n
US Stablecoin Bill Sparks Debate<\/h2>\n
The legislation, designed to \u201cprovide for the regulation of payment stablecoins, and for other purposes,\u201d has sparked bipartisan debate. <\/p>\n
On one side, Democratic lawmakers continue to display skepticism. They align with industry advocates who contend that current securities laws are robust enough to manage cryptocurrencies.<\/p>\n
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\u201cIt proposes a cumbersome framework with inherent structural issues that will undermine the ability of our federal financial regulators to properly regulate and oversee an industry already rife with instability and fraud,\u201d Rep. David Scott said.<\/p>\n<\/blockquote>\n
On the other side, Republicans, spearheaded by Reps. French Hill and Patrick McHenry, see the need for new legislation to regulate digital assets. They have turned towards the Commodity Futures Trading Commission (CFTC) as a preferred regulator. <\/p>\n
The goal is to marginalize the Securities and Exchange Commission\u2019s (SEC) reach into the crypto industry.<\/p>\n
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\u201c[We want to put out a stablecoin] bill that deals with both the capital raising piece for digital assets all the way through how a product goes from a securities regime to a commodities regime. At the same time, [we want to] preserve our right around products that [fit] neither neatly into the securities or commodities regime and the ability for people to exchange those,\u201d McHenry said. <\/p>\n<\/blockquote>\n
Read more: This Congressman Wants to End America\u2019s War on Crypto<\/p>\n
Recent developments in the SEC\u2019s case against Ripple Labs could potentially influence the proceedings. A landmark ruling by federal Judge Analisa Torres stated that Ripple\u2019s XRP sales to institutional investors violated securities laws. <\/p>\n
Still, other sales, notably those to everyday investors on crypto exchanges, were exempt from these rules.<\/p>\n
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\u201cThe ruling gives large institutional investors greater protections than everyday Americans. Outcomes like this are what happens when regulators force courts to make policy instead of Congress. Our comprehensive market structure legislation will give all investors, customers, and market participants the same longstanding protections found in traditional financial markets,\u201d McHenry stated. <\/p>\n<\/blockquote>\n
The Influnce of SEC vs. Ripple Ruling <\/h2>\n
The verdict\u2019s ramifications extend beyond Ripple, sending waves throughout Wall Street and Silicon Valley. The investor protections granted to registered investment products, it appears, do not extend to retail traders. <\/p>\n
This discrepancy, as Howard Fischer, former senior trial counsel at the SEC, points out, is \u201calmost counterintuitive.\u201d<\/p>\n
The implications of this ruling have given Republicans an opportunity to rally support for their proposed stablecoin bill. However, they face staunch opposition from Democrats. They generally support SEC Chair Gary Gensler\u2019s position that most crypto activity falls under the SEC\u2019s jurisdiction.<\/p>\n
Read more: Senator Elizabeth Warren Wants to Form an Anti-Crypto Army<\/p>\nCrypto Regulation Worldwide. Source: Statista<\/figcaption><\/figure>\n
The House Agriculture Committee also expected to debate and vote on the legislation. The anticipation surrounding these discussions is heightened by their potential implications for the future regulatory framework of cryptocurrencies. Especially Bitcoin, the largest digital asset viewed as a commodity.<\/p>\n
The delay of one-week for the stablecoin bill may provide a breather for all parties involved, allowing for more negotiation and changes.<\/p>\n
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Disclaimer<\/h3>\n
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.<\/p>\n<\/div><\/div>\n