Members of the United States House Financial Services Committee seem to be divided on the best legislative path forward dealing with regulatory clarity for crypto and blockchain technology.
In a July 26 markup hearing, the committee had several bills on its agenda, including the Financial Innovation and Technology for the 21st Century Act, Blockchain Regulatory Certainty Act, and Financial Technology Protection Act of 2023 — all directly related to addressing the regulation of cryptocurrencies. Many lawmakers supported the first bill, claiming it would help address another failure like the collapse of the FTX exchange, while others criticized the measure as favoring crypto firms over consumers.
Committee chair Patrick McHenry said the Financial Innovation and Technology for the 21st Century Act would help clarify the authority the Securities and Exchange Commission and Commodity Futures Trading Commission had over payment stablecoins. However, ranking member Maxine Waters and others claimed the bill would still allow for the commingling of customer funds — as allegedly happened between FTX and Alameda Research — and required the development of an “entirely new regulatory structure” rather than relying on existing securities laws.
Key changes include:
✅ Revisions to pre-registration oversight of intermediaries ✅ Fine-tuned registration requirements ✅ Clarifies SEC & CFTC authority for payment stablecoins ✅ Increased CFTC funding
— Financial Services GOP (@FinancialCmte) July 25, 2023
The debate concerning the bill was not entirely split along party lines. Democratic Representative Jim Himes acknowledged that the legislation could have prevented the collapse of FTX, but also expressed ignorance about certain aspects of the crypto space, including the recent ruling in the SEC v. Ripple lawsuit on XRP (XRP) as a security. Massachusetts Representative Stephen Lynch referred to the bill as the “worst piece of legislation that has been presented for markup” in his roughly 20 years in government.
House Republicans said the bill would offer $120 million in funding to the CFTC to build up its resources addressing regulation of the crypto space, but some Democrats objected to how the funds would be redirected from the SEC, potentially limiting its capacity for enforcement. At the time of publication, lawmakers continued to debate the bills and proposed amendments, with a vote expected on July 26.
The bills are just a few of several proposed pieces of legislation aimed at addressing what many have called a regulatory gap in dealing with digital assets. The SEC has filed lawsuits against Coinbase, Binance and others in addition to enforcement cases against executives at FTX and Celsius.
Canterbury MP Rosie Duffield has resigned from the Labour Party.
The 53-year-old MP is the first to jump ship since the general election and in her resignation letter criticised the prime minister for accepting thousands of pounds worth of gifts.
She told Sir Keir Starmer the reason for leaving now is “the programme of policies you seem determined to stick to”, despite their unpopularity with the electorate and MPs.
In her letter she accused the prime minister and his top team of “sleaze, nepotism and apparent avarice” which are “off the scale”.
“I’m so ashamed of what you and your inner circle have done to tarnish and humiliate our once proud party,” she said.
Since December 2019, the prime minister received £107,145 in gifts, benefits, and hospitality – a specific category in parliament’s register of MPs’ interests.
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Ms Duffield, who has previously clashed with the prime minister on gender issues, attacked the government for pursuing “cruel and unnecessary” policies as she resigned the Labour whip.
She criticised the decision to keep the two-child benefit cap and means-test the winter fuel payment, and accused the prime minister of “hypocrisy” over his acceptance of free gifts from donors.
“Since the change of government in July, the revelations of hypocrisy have been staggering and increasingly outrageous,” she said.
“I cannot put into words how angry I and my colleagues are at your total lack of understanding about how you have made us all appear.”
Ms Duffield also mentioned the recent “treatment of Diane Abbott”, who said she thought she had been barred from standing by Labour ahead of the general election, before Sir Keir said she would be allowed to defend her Hackney North and Stoke Newington seat for the party.
Her relationship with the Labour leadership has long been strained and her decision to quit the party comes after seven other Labour MPs were suspended for rebelling by voting for a motion calling for the two-child benefit cap to be abolished.
“Someone with far-above-average wealth choosing to keep the Conservatives’ two-child limit to benefit payments which entrenches children in poverty, while inexplicably accepting expensive personal gifts of designer suits and glasses costing more than most of those people can grasp – this is entirely undeserving of holding the title of Labour prime minister,” she said.
Ms Duffield said she will continue to represent her constituents as an independent MP, “guided by my core Labour values”.