California Representative Maxine Waters, who holds a prominent position on the US House Financial Services Committee, has urged federal regulators to provide their input on a proposed framework for digital assets. In a letter dated June 23, Waters specifically called on Treasury Se cretary Janet Yellen and Securities and Exchange Commission (SEC) Chairman Gary Gensler to offer information regarding the potential impact of the Digital Asset Market Structure Act. The proposed legislation, introduced by Republican lawmakers on June 1, aims to establish a comprehensive regulatory framework for digital assets in the United States, addressing gaps between the SEC and the Commodity Futures Trading Commission.
Waters requested Gensler's insights on how the proposed framework, if enacted, would affect the SEC's existing authority to safeguard cryptocurrency investors. She also sought feedback from Yellen, emphasizing the need to address any potential conflicts between the proposed legislation and the Financial Stability Oversight Board's existing Recommendations on digital assets, as outlined in President Joe Biden's executive order on cryptocurrencies. Discussions on the appropriate regulatory approach to digital assets are ongoing in the United States, with lawsuits between regulators and private companies, as well as criminal cases related to alleged fraud, being pursued.
Former FTX CEO Sam Bankman-Fried is expected to face 13 criminal charges in two separate trials commencing in December 2023 and March 2024. Cryptocurrency exchanges Binance and Coinbase also face civil lawsuits from the SEC over alleged unregistered securities offerings. Waters has set a deadline of June 30 for Yellen and Gensler to respond, and she indicated that they may be required to address the committee if necessary.
