US Needs Incremental Approach To Create Crypto Regulations: Senator Hagerty
In a recent report, a United States Senator, Bill Hagerty, urged the US policymakers to implement an incremental approach towards creating a cryptocurrency regulatory framework rather than trying to draft larger and broader legislation.
To tame the rapidly evolving crypto industry, the United States lawmakers have been on their toes for a while, trying to create a broad regulatory framework to regulate and control the crypto sector. However, Senator Bill Hagerty, R-Tenn. has urged them to take a different approach in drafting a crypto regulatory framework.
In an event organized by the Catote Institute, the senator expressed that rather than a broader approach, the US policymakers should implement an incremental system as it gives them time and opportunities to learn from their actions and also make meaningful contributions to the industry.
In his speech, he suggested that it is more logical to take step-by-step methods instead of trying to bring up an entirely complete framework in one breath. He reportedly expressed his views as the United States lawmakers are brandishing various bills, with some focused on particular problems while others take a comprehensive method, all intending to draft a regulatory framework for crypto.
Senator Proposed An Incremental Approach To House
In July, a report showed that the House committees for Financial Services and Agriculture, which were both led by Republican policymakers, drafted a bill that overhauls the crypto market rules in segments via developing a strategy for a crypto asset to change status from being a security asset to a commodity token. The bill, according to the report, is ready to be presented before the House of Representatives of the United States
Regarding the new development, Senator Hagerty remarked that a bipartisan team of policymakers drafted a bill to tighten the current regulations on fighting money laundering, sanctions breaching, and terrorist funding by clarifying how the rules apply to cryptocurrency.
Furthermore, he highlighted that as the chair of the House’s Senate Banking Committee, he drafted some bills in 2022 covering the shorter side of crypto regulation, including rules that aim to protect crypto exchanges from inappropriate enforcement actions of the United States Security and Exchange Commission.
Explaining further, he stated that his suggested incremental approach helps to build certainty and clarity. Also, it allows policymakers to track back and learn from their world in order to make more meaningful contributions to the industry.
Hagerty Condemns SEC’s Enforcement Approach
In addition, the senator pointed out that the bill he drafted only contains two pages, which makes it simpler and more comprehensive to implement, unlike the complex and cumbersome bills drafted by other policymakers. Nonetheless, he stated that he has proper admiration for his colleagues; however, he observed that they are engrossed with giving more value to legislation with huge numbers of pages and complex approaches.
However, as a businessman, he said things don’t have to be that way. He explained that there is a massive volume of value in simplicity, especially if it concerns an industry that is rapidly evolving, such as the crypto industry. In addition, he added that policymakers have to develop broad boundaries in order to facilitate innovations and also respond in accordance.
Furthermore, Senator Bill Hagerty slams the US SEC because of the commission’s extreme approach in enforcing regulations on the crypto industry recently. He stated that the rule by enforcement proceeding the chairman of the SEC, Gary Gensler, implemented on the industry is hurtful and harmful to both private and institutional entities in the industry.
In addition, the Senator pointed out that instead of assembling a set of requirements to give a clear and comprehensive guide to crypto industry participants, the commission is busy watching the market evolve while they pick and choose parts of the market where they wish to place an enforcement action, saying it is wrong because they don’t like it. In his view, Hagerty said it is now up to the policymakers of the United States to bring the commission’s irrational actions into check.
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