U.S. administrative representative Patrick McHenry recently launched an open critique of two governing bodies namely the Commodity Futures Trading Commission (CFTC) and the SEC over their regulatory handling of digital assets. McHenry cited the need for the existence of a separate special entity to regulate digital assets or cryptocurrencies.
McHenry's comments came amid growing scrutiny of the SEC and U.S. regulators. others in their handling of the growing crypto market. To date, the United States does not have any comprehensive federal law on the crypto market.
In an interview with Punchbowl, Rep. McHenry is of the view that there is a need for a proper definition of digital assets. He argues that cryptocurrencies are neither a commodity nor a security. Waima so he did not explain his definition.
McHenry suggested that the rapidly growing crypto industry requires separate regulatory bodies other than the SEC and CFTC. However, he stressed that Congress needs to play a role in defining this cryptocurrency. It is important to do so because there is no clarity about it and also no specific regulatory body to monitor it.
He also criticized existing regulators, as they lack understanding of this fast -growing crypto market. He basically argues that the Securities Exchange Commission and the CFTC lack such capacity to regulate these new innovations well.
The long-running legal lawsuit between the U.S. SEC and Ripple is a clear example of this issue. On the one hand, the Commission claims that the original Ripple XRP token is a form of security while Ripple insists that it is not.
The controversial case has shown many loopholes. Ripple and other defendants also allege that SEC officials forcibly dragged XRP tokens into the lawsuit and in the meantime turned a blind eye to other cryptocurrencies. Meanwhile, the trial of the case is expected to be completed in 2023.
