U.S. Lawmakers Urged to Act on Crypto Regulation to Prevent Industry Exodus

U.S. Lawmakers Urged to Act on Crypto Regulation to Prevent Industry Exodus

U.S. Representative Josh Gottheimer has called for urgent legislative action to clarify regulators' roles in the cryptocurrency sector, warning that without such measures, companies may relocate abroad. Speaking after a September 27 roundtable discussion with CFTC Chair Rostin Behnam and industry leaders, Gottheimer highlighted the importance of regulatory clarity to keep the crypto industry competitive within the U.S.

Regulatory Clarity Seen as Crucial for Industry Growth

Gottheimer noted that several proposed crypto bills, including the Digital Commodities Consumer Protection Act, are key "building blocks" toward achieving regulatory clarity. This act aims to expand the CFTC's authority over the crypto spot market, a move that could enhance investor protections and market integrity. While expressing optimism about the bill's potential, Gottheimer also acknowledged that it is not the sole legislative path forward, leaving room for alternative approaches to regulation.

Industry Leaders and Lawmakers Align on Need for Action

The roundtable discussion underscored the alignment between lawmakers and industry leaders on the need for clear regulatory frameworks. Participants emphasized that without decisive action, the U.S. risks losing its competitive edge in the global crypto market. Gottheimer's comments reflect a growing consensus among policymakers that targeted legislation is essential to foster innovation while safeguarding consumers and maintaining financial stability.

Conclusion

The call for legislative clarity in crypto regulation highlights the delicate balance between innovation and oversight. As the U.S. navigates this evolving landscape, the ability of lawmakers to pass effective legislation will be critical in determining the future of the crypto industry within the country.