Financial Regulators Urge Congress to Pass Crypto Legislation in New Report
Financial regulators in the US are urging Congress to pass cryptocurrency legislation as part of the digital currency and blockchain technology industry’s development.
The report issued by the Commodity Futures Trading Commission (CFTC), the Securities and Exchange Commission (SEC), the Financial Crimes Enforcement Network (FinCEN), and the Office of the Comptroller of the Currency (OCC) on Thursday encourages Congress to pass measures “that promote responsible innovation, reduce compliance costs and promote greater market predictability”.
The regulators state that this will be beneficial for both the consumer and the industry, and will “serve to strengthen the integrity of the markets and our nation’s financial infrastructure”.
The report notes that despite the rapid growth of the digital currency and blockchain industry, there is still a lack of clarity in regards to regulation. This creates a situation that is “uncertain for industry participants” who are trying to comply with the law. The report goes on to recommend the passage of a federal framework that will provide investors and other industry participants with clarity and protection.
The report also emphasizes the importance of anti-money laundering and countering the financing of terrorism (AML/CFT) compliance within the digital currency industry. It recommends increased enforcement of AML/CFT measures and the adoption of “robust” corporate compliance programs.
The regulators suggest that the government consider introducing legal definitions of crypto assets such as tokens, virtual currencies, and other blockchain-based technologies. This, they argue, will make legislation more effective and ensure it keeps up with the rapidly changing industry.
The report also recommends that the US government look to engage in international collaborations and request that “key international counterparts” create research teams to review policy options designed to protect users.