American politician Bill Huizenga recently stated he wants lawmakers to pay more attention to the “muddied and fairly opaque” cryptocurrency trading and initial coin offering (ICO) markets. Huizenga added that Congress should work closely with regulatory authorities to ensure the safety of digital currency traders.
The US state of Michigan republican suggested federal regulators such as the Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC) could monitor cryptocurrency markets in the same way they currently monitor the traditional financial sector.
Classifying Cryptocurrencies Is Imperative
During an interview at his Capitol Hill office, Huizenga noted that it’s imperative for lawmakers to decide how they want to categorize cryptocurrencies. According to the congressman, US lawmakers have not yet decided on exactly how to approach regulating digital currencies.
Everyone’s trying to figure out whether it’s fish or fowl. It turns out it might be a platypus. It’s kind of an unknown, or something sort of in between. How do we deal with that?
While government officials may not have come to a clear agreement, they have issued several warnings on crypto-related scams. Due, in part, to the abusive activity, lawmakers think that the digital currency market requires proper regulatory oversight in order to increase transparency and ensure investor protection, while remaining undecided on the regulatory approach.
Bringing Regulatory Clarity
Huizenga, who’s in charge of the House Financial Services Subcommittee on securities and investment, promised he will help create a more comprehensive regulatory framework for cryptocurrencies if he’s appointed chairman next year.
Interestingly, Huizenga’s comments on the evolving crypto market come at a time when Nasdaq, one of the world’s leading stock exchanges, reportedly conducted a private meeting with Wall Street analysts and cryptocurrency experts. According to sources, representatives from the Gemini crypto exchange, which was founded by the famous Winklevoss twins, attended the meeting.
It appears regulators, traditional financial professionals, and digital currency enthusiasts are working to bring clarity to the burgeoning crypto industry. Despite the recent rejection of Cameron and Tyler Winklevoss’ bitcoin ETF application, SEC chairman Jay Clayton has revealed decentralized cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) aren’t securities.