Key Points

  • CFTC, Coinbase and Robinhood have been called up to testify in the U.S. Congress on June 6 regarding a newly proposed crypto regulation bill
  • The trio will send its representatives to share the organization’s views on the bill that could see some digital assets classified as commodities. 

CFTC, Coinbase and Robinhood join Capitol Hill in talks about crypto regulation

The United States Commodities regulator, CFTC, has been called upon by Congress to witness and contribute to talks and reviews about a newly tabled crypto regulation bill. The bill will possibly see some crypto and digital assets get classified as commodities, which will fall under the CFTC’s jurisdiction.

The regulator will be accompanied by two more crypto organizations, Coinbase and Robinhood, which will serve as industry representatives and must testify.

“Tomorrow I have the honor of testifying on Capitol Hill before the House Committee on Agriculture to share Coinbase’s views on the Digital Asset Market Structure Discussion Draft […] released last week,” said Coinbase Chief Legal Office Paul Grewal in a statement on June 5.

Other witnesses in the proceedings will be former CFTC Chair Chris Giancarlo, former CFTC commissioner Dan Berkvitz and FIAconnect founder Walt Lukken. The developments come when an uproar regarding crypto regulation in the U.S. continues as the SEC keeps going after crypto organizations.

The moves by SEC have been heavily criticized as it is classifying select crypto assets as securities without following due process. As such, economists fear innovation will bypass the U.S. and head to other nations, which may affect their economies significantly in the long term.

In a June 5 Twitter thread, Grewal gave a rundown of what his testimony will focus on.

“The U.S. is falling behind. We cannot afford to ignore crypto while other markets take advantage of our absence, developing rules and regulations that enable the industry to thrive and risk sending jobs, investment, and technological leadership overseas,” Grewal noted, adding that:

“We need a clear rulebook in the U.S. to achieve the full promise of crypto. Until rules and laws are developed that reflect the realities of this new economic system, we cannot realize the full potential of making our financial system faster, fairer, and more affordable.”

He added

“While regulation establishes clear rules for the industry, it also provides important accountability measures for potential bad actors. U.S. legislation helps good guys innovate and ensures bad guys are held accountable.”

“How we define digital assets is critical for enabling innovation. Digital assets are diverse, and if we fail to effectively draw clear definitions of which assets are securities, which are commodities, and which are neither, crypto will continue to sit in regulatory limbo.”

Keep watching Fintech Express for updates on this and other Fintech-related stories.