Is Congress the only hope?
In the midst of the SEC’s crypto crackdown, there are glimmers of hope that Congress could be on the path to providing a clear and practical regulatory framework. As noted above, a bi-partisan bill was introduced a few weeks ago to clarify that the underlying asset of an investment contract is not a security unless it otherwise meets the definition. Barely a week ago, the Chairs of the House Financial Services Committee (overseeing the SEC) and the House Committee on Agriculture (overseeing the CFTC) released a discussion draft for a digital asset market structure proposal intended to provide a comprehensive statutory framework for digital asset regulation in the US. Without Congressional action, the SEC is expected to continue its aggressive crypto crackdown and regulation by enforcement approach. However, in a politically divided government, whether there is sufficient support for a legislative fix remains unclear.
‘Enforcement 40’ for 2020
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