Amid pressure from the federal enforcers, crypto firms want Washington to do away with old rules relating to crypto currency.
The debate in Washington is for federal regulators to accept the self regulations proposed by the crypto firms that will temporarily exempt them from the multiple regulations.
The crypto industry recently brought out principles for the Congress and the administration to follow and crypto venture capital firms like Andreessen Horowitz, pro-crypto think tank Coin Center, and trade groups like the Blockchain Association have all stepped in supporting several firms and associations. The market giant Coinbase Inc. is also expected to weigh in.
The ideas include setting up a self-regulatory body to create a safe environment for new crypto projects, allowing firms to grow for years before registering with the Securities and Exchange Commission (SEC), as it is both exorbitant and time-consuming. The firms are also not clear about some regulations as to when and how they can be applied.
Michelle Bond, head of the Association for Digital Asset Markets, a self-governing association, said, “The industry has been playing a reactionary role. That needs to change.” The statement was recorded by Bloomberg.
Coinbase, the largest American crypto exchange, is set to launch its own paper. At a House Financial Services Committee hearing with SEC chair Gary Gensler last week, Connecticut democrat Jim Himes said that the idea of a new crypto regulator isn't necessary, according to Bloomberg.
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