Many lawmakers are unhappy with how the SEC is handling cryptocurrencies like Bitcoin in the US.
They believe the SEC is holding back innovation in the U.S. while other countries, like China, are speeding ahead. Let’s discover how this can affect Bitcoin custody in the country.
Urgent Call for Action on Bitcoin Custody Regulations
These companies will be allowed to get around a big rule that stops regular financial institutions from holding cryptocurrencies like Bitcoin. Peirce feels this is unfair and that the SEC isn’t being consistent with its rules.
Normally, financial institutions that are regulated by the SEC can’t hold cryptocurrencies for their customers. But Peirce says that the SEC will start letting certain companies bypass this rule.
BREAKING: 🇺🇸 SEC Commissioner Hester Peirce says they’re allowing “particular entities” to bypass SEC rule preventing regulated financial institutions from custodying #Bitcoin and crypto 👀 pic.twitter.com/aoPAUeRMKg
— Bitcoin Magazine (@BitcoinMagazine) September 24, 2024
This issue has caught the attention of Congress, where lawmakers are pushing for the U.S. to stay competitive in the global tech race. They don’t want the country to “fall behind” in the fast-growing crypto industry. Congress wants the U.S. to be a leader in this space, not a follower.
More About the US Congress & Crypto
U.S. Congressman Tom Emmer recently challenged SEC Chairman Gary Gensler over his handling of cryptocurrency regulations, expressing strong dissatisfaction with the current state of affairs. Emmer stated, “Your inconsistencies on this issue have sent this country back. We could not have had a more historically destructive or lawless Chairman of the SEC.”
JUST IN: 🇺🇸 US Congressman Tom Emmer grills Gary Gensler over crypto regulation:
“Your inconsistencies on this issue have sent this country back. We could not have had a more historically destructive or lawless Chairman of the SEC.” 👀 pic.twitter.com/eHyxzeuLdm
— Bitcoin Magazine (@BitcoinMagazine) September 24, 2024
His comments highlight growing frustration among lawmakers who believe that Gensler’s unclear and shifting policies are hindering the U.S.’s progress in the crypto space. Emmer’s remarks underscore the urgency for a more coherent and effective regulatory framework to foster innovation while ensuring compliance.
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