“No Deal Is Better Than a Bad Deal”: Frustrated US Lawmakers Hit Crypto Regulation Roadblock

US lawmakers are trying to pass a broad law to govern crypto in the U.S., but they are stuck on the details and the politics. 

At the Blockchain Association Policy Summit in Washington D.C., Sen. Bernie Moreno said negotiations on a crypto regulation bill have been “frustrating”. At least decently, he added.

The core problem is the split between the Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC). Both want authority over parts of the crypto market, so this bill is supposed to draw a clear line and say which assets count as securities that fall under the SEC, which count as commodities that fall under the CFTC, and what rules exchanges and other intermediaries must follow to protect customers. 

Until there is a clear framework, everyone operates in a gray area and big firms are left guessing how regulators will treat them.

Read more: Western Union Plans “Stable Card” to Shield Users From Sky-High Inflation

No Deal Better Than a Bad Deal?

Moreno is saying negotiations have been “decently frustrating” because Republicans and Democrats still disagree on what exactly should be in the final bill and how far to go in reining in or enabling the industry. 

The House has already passed its own bill, the Digital Asset Market Clarity Act. The Senate has its own draft being worked on in the Banking Committee, where Sen. Bernie Moreno sits. 

That Senate draft would do two big things: divide jurisdiction between the SEC and CFTC, and create a category called “ancillary assets”, basically a way to say that some crypto tokens linked to a broader project are not securities, even if the original fundraising might have been.

Moreover, Moreno claimed he’d rather have no law at all than a law he thinks is poorly designed or damaging. 

What I don’t want to do is promulgate a bad bill just to say that we passed something. No deal is better than a bad deal.

Bernie Moreno, US Senator.

So, the next steps we can expect are committees tweaking their drafts, holding hearings, marking up the bills, and then trying to get enough support in both chambers to pass a single, reconciled version. They are nowhere near finished, which is why he’s obviously impatient.

Related: Canada’s Tax Agency Flags Massive Crypto Non-Compliance but Brings Zero Charges Since 2020

The post “No Deal Is Better Than a Bad Deal”: Frustrated US Lawmakers Hit Crypto Regulation Roadblock appeared first on Crypto News Australia.