CFTC and SEC to form working group on cryptocurrencies

U.S. lawmakers intend to force the CFTC and SEC to create a working group on cryptocurrencies. In case of refusal, a special decree will be issued.

Members of the U.S. House of Representatives sent a letter to the heads of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission asking them to jointly create a group that would clarify many regulatory issues as well as help pass transparent laws regarding cryptocurrencies.
In a Twitter post, House spokesman Glenn Thompson said he sent a letter with Rep. Patrick McHenry to the CFTC and SEC, urging the agencies to "create a joint working group on digital assets." Thompson and McHenry asked SEC Chairman Gary Gensler and CFTC Acting Chairman Rostin Behnam to "facilitate an active dialogue" between federal regulators and crypto market participants.

As Glenn Thompson, one of the letter's authors, notes, the cryptocurrency working group would allow the SEC and CFTC to explore how to effectively use their current jurisdictions together.

CFTC and SEC to form working group on cryptocurrencies

"Such a working group could facilitate transparent engagement with innovators in the digital asset ecosystem. As Congress considers additional legislation to address regulatory gaps, this work could provide us with additional information and clarity in making these important policy decisions."

Notably, the letter underscores the fact that unless agencies start working independently on the proposed bill, proper legislation will soon take effect.

Back in April of this year, the House of Representatives approved a bill that would establish the authority of the SEC and CFTC to regulate cryptocurrencies.
"There is nothing stopping the SEC and CFTC from carrying out their current activities, but already under current law," said House spokesman Glenn Thompson.
Many institutional investors bemoan the lack of clear regulation of the industry in the United States. Because of this, they have no confidence in the cryptocurrency industry as a whole. Currently, the SEC, CFTC and the Financial Crimes Enforcement Network regulate digital assets in the country, but with different jurisdictional claims, resulting in companies not always being able to handle the responsibilities they are charged with.
The Securities and Exchange Commission (SEC) often deals with trying to determine whether certain tokens can be classified as securities under the Howey test. A prime example is the protracted procedural case with Ripple about their digital asset XPR.
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