Crypto bill from Republicans lays out clear roles for SEC and CFTC



SHAREShare Article via FacebookShare Article via TwitterShare Article via LinkedInShare Article via Email


  • Reps. Patrick McHenry, R-N.C., and Glenn Thompson, R-Pa., introduced a bill that proposes a more clear delineation of authority between the SEC and the CFTC on crypto issues.
  • It would provide a pathway to registration and explicitly allow crypto securities to be traded on alternative trading systems, both under the SEC’s purview.
  • The CFTC would oversee the crypto spot commodity market under existing law.

Rep. Patrick McHenry, a Republican of North Carolina and ranking member of the House Financial Services Committee, speaks during a hearing in Washington, D.C.

Andrew Harrer | Bloomberg | Getty Images

Republican lawmakers released a draft bill on Friday that would provide crypto assets and exchanges a clearer regulatory plan, allowing digital assets to be traded on more conventional trading platforms and introducing a division of authority between the top two U.S. financial regulators.

The discussion draft was co-authored by Reps. Patrick McHenry, R-N.C., and Glenn Thompson, R-Pa., and would grant the Commodity Futures Trading Commission explicit spot market authority over crypto commodities under existing law.


Inflation, Fed policy back in focus for crypto investors as bitcoin enters summer doldrums

Tanaya Macheel


The Securities and Exchange Commission would regulate digital-asset securities.

The bill would “prohibit the SEC” from preventing an alternative trading system, or ATS, from listing crypto securities and would require the SEC to “modify its rules to allow broker-dealers to custody digital assets,” according to a draft summary.

The bill proposes a clearer pathway for the registered offer and sale of digital assets. The SEC has based several enforcement actions against American crypto entities — including Gemini, Genesis and Kraken — by arguing the companies engaged in the unregistered offer and sale of securities.

A key carve-out for DeFi — or decentralized finance — assets would allow SEC-certified assets to be exempt from registering as securities.

Crypto exchanges have been calling for regulatory clarity in the wake of expansive enforcement actions that have left companies and developers scrambling to move operations beyond the U.S. Crypto exchanges Coinbase and Gemini have both announced off-shore exchange operations.

Coinbase also is engaged in a bruising courtroom battle with the SEC over the very issues that apparently prompted the McHenry-Thompson bill. The crypto exchange received a Wells notice, a warning of impending enforcement action, from the SEC earlier this year.

The draft bill will likely be reshaped and modified in coming weeks and months, but it represents a powerful vote of support from two influential Republican members.


Barack Obama shares his No. 1 piece of advice for his own daughters—it’s about success and happiness

Harvard psychologist: If you use any of these 9 phrases, ‘you’re more emotionally secure than most’

23-year-old’s ice cream empire brings in $650,000 a year—here’s how he got started

36-year-old bought an abandoned house for $1 and fully renovated it—take a look: It’s my ‘dream home’

Boycotts hit stocks hard. What may be next for Target and others caught in the anti-Pride backlash

by Taboola

Sponsored Links


JFrog as a DevOps PlatformJFrogLearn More

Speciale fuori tutto climatizzatori. Prendi 2 paghi 1.Ariel EnergiaScopri di più


As the market starts to cool down, Cramer says don’t be afraid to stay bullish

Arnold Schwarzenegger: ‘No one gives a s--- about’ climate change — this is what it should be called instead

ChatGPT cited ‘bogus’ cases for a New York federal court filing. The attorneys involved may face sanctions.

JPMorgan raises 2024 economic outlook for India, but remains cautious of global headwinds

DeSantis bid to disqualify judge in Disney case is denied, but judge recuses himself anyway over relative’s stock conflict