Congressman Glenn "GT" Thompson has taken to Twitter to share that he and Congressman Patrick McHenry have sent a letter to the Securities and Exchange Commission and the Commodities Futures Trading Commission to urge them to start a constructive dialogue with the nascent cryptocurrency industry rather than stifle it with heavy regulation.
The letter addresses SEC chairman Gary Gensler and the acting chairman of the CFTC picked by President Biden, Rostin Behnam. They are urged to set up a joint working group on digital assets.
Today I sent a letter to @SECgov & @CFTC with my colleague @PatrickMcHenry urging the agencies to establish a joint working group on digital assets.⁰August 16, 2021
This is an important step to ensure much-needed clarity in the industry for market participants.
"Stop regulating innovation out of the U.S."
In the letter, Thompson and McHenry stated that, at the moment, the U.S. stands at a pivotal point regarding the future of the local digital asset ecosystem and how regulatory policies for it will be shaped.
The congressmen mentioned that the recent statements of SEC chair Gary Gensler and Senator Warren sound concerning regarding the future of the innovative crypto industry and are likely to push crypto-related innovations and new jobs out of the U.S.
Instead, the authors of the letter suggested that a constructive and active dialogue with crypto market players and regulators must be started.
Rather than regulate innovation and job creation out of this country, we should promote an active dialogue between regulators and market participants.
The SEC and CFTC should start negotiating with crypto market
In early March, bipartisan bill H.R. 1602, the Eliminate Barriers to Innovation Act of 2021, was passed in the U.S. Congress.
It requires that the SEC and CFTC representatives create a working group that would create an active and collaborative dialogue with cryptocurrency companies.
Apart from crypto market participants, it would include organizations that protect the interests of investors, regulators, academic research organizations, stakeholders and more.
The authors of the letter state that while this bill was passed and the working group is to be created, the SEC and CFTC can do the same by themselves and start cooperating with crypto companies and other market participants as soon as possible to figure out the best regulations together. This way, the innovative industry of blockchain and crypto can begin prospering in the U.S. and not push it out of the country with Draconian laws.