Crypto Industry Seeks Legislative Support Amid SEC Crackdown

Intensified Lobbying Efforts

Crypto companies are ramping up lobbying efforts in Congress to secure legislative support that would provide clearer regulations for the industry. With increased scrutiny from the U.S. Securities and Exchange Commission (SEC), organizations like the Blockchain Association and the Crypto Council for Innovation are advocating for a bill that clarifies the jurisdiction of cryptocurrencies.

Regulatory Challenges and SEC Scrutiny

The SEC's assertion of authority over the crypto industry has intensified, especially following lawsuits against major exchanges like Coinbase and Binance. These actions have spurred the crypto sector to push for legislation that distinguishes cryptocurrencies as commodities rather than securities, aiming to limit the SEC's jurisdiction.

Proposed Legislation

A draft bill from Republican leaders aims to define when cryptocurrencies are considered securities or commodities. This legislation would bolster the Commodity Futures Trading Commission's (CFTC) oversight while clarifying the SEC's role. The bill has the potential to become law due to bipartisan cooperation between key committees.

Bipartisan Support and Skepticism

For the bill to succeed, it requires bipartisan support. While some Democrats are skeptical due to past industry scandals, such as the FTX collapse, crypto lobbyists are targeting undecided members to gain their backing. The focus is on demonstrating how the bill could protect American innovation and jobs.

Rebuilding Industry Credibility

Following setbacks from scandals, the crypto industry is working to rebuild its credibility. It has already spent millions on federal lobbying and continues to engage in grassroots campaigns to mobilize public support. Coinbase, a significant player, is actively encouraging crypto users to reach out to lawmakers to advocate for favorable regulations.

By intensifying lobbying and seeking legislative clarity, the crypto industry aims to navigate the regulatory landscape and ensure its growth and stability in the United States.