A hearing on cryptocurrency market structure reform held in the U.S. House Financial Services Committee saw a strengthening of bipartisan consensus on the need for regulatory clarity and updated disclosure regimes for digital assets.
According to Fox Business correspondent Eleanor Terrett, witnesses and most lawmakers agree that a legal framework needs to be created to protect the crypto industry, as well as other areas that interact with it.
One of the key topics of the session was at what point digital assets should be classified as commodities and whether the Commodity Futures Trading Commission (CFTC) should be given broader powers in spot markets. Members of Congress noted that these issues are at the core of current legislative work.
One notable concern from the Democratic camp is that President Donald Trump’s involvement with the cryptocurrency market could complicate the legislative process, a view shared by some Republicans. Republican Rep. French Hill said last week that the Trump family’s involvement with memecoins and stablecoins “complicates the work.”
On the other hand, witnesses said that the Securities and Exchange Commission’s (SEC) application of the Howey Test on digital assets fell short, especially with regard to secondary market transactions.
The session also brought up potential uses for blockchain technology in sectors other than finance. More details on how blockchain could be used, especially in areas such as agriculture, are expected to be discussed in the upcoming crypto session of the Agriculture Committee.
It is stated that these sessions are the beginning of the “market structure season” in which draft laws on market structure begin to take shape, and the first drafts are expected to be presented to the public in the coming weeks.
*This is not investment advice.
