On the eve of a U.S. House of Representatives hearing to scrutinize a bill to establish rules for the crypto markets, Democrats said they’ve been stymied from seeking technical information about its effects from the U.S. Securities and Exchange Commission, according to staffers.
Regulatory agencies such as the SEC routinely give technical analysis to lawmakers, answering questions about the potential effects of legislative efforts such as the Digital Asset Market Clarity Act that would establish regulatory guardrails for digital assets. Democratic staff on the House Financial Services Committee submitted questions to the SEC about the bill and in a briefing were denied basic answers that were previously given to Republicans, according to the Democratic aides who asked not to be named. The agency also didn’t offer its subject-matter experts for the discussion, they said.
On Tuesday, the panel’s ranking Democrat, Representative Maxine Waters of California, prepared a letter to SEC Chairman Paul Atkins to demand “comprehensive technical and impact analysis” of the crypto market structure bill. She included several pages of questions in a draft reviewed by CoinDesk, contending that “fulsome answers to the questions raised above are necessary for the American people, through their representatives in Congress, to determine whether this legislative proposal addresses the unique risks related to crypto, and would foster the needed environment for responsible innovation to take root.”
Spokespeople for the SEC didn’t immediately respond to a request for comment on the complaints.
The House committee is set to hold the Clarity Act hearing on Wednesday after having recently introduced the long-negotiated legislation, a successor of the last sessions’ Financial Innovation and Technology for the 21st Century Act (FIT21). The House Agriculture Committee, which also has jurisdiction over the regulation of digital assets, is running its own hearing at the same time.
This bill represents the central policy goal of the crypto industry, which contends that it needs clear U.S. regulations to encourage investors who’ve waited on the sidelines and to keep crypto innovators from moving overseas.
The Democratic staffers say that members have concerns about the traditional securities firms finding loopholes in this major legislation that will allow them to skirt existing securities regulations.
But congressional Democrats haven’t acted as a block when it comes to this and a related stablecoin bill also making its way through the legislative process. While some leaders, including Waters, have opposed advancing crypto legislation, other Democrats have joined with Republicans to move bills forward in both the House and Senate.
Read More: Planned Crypto Hearing in U.S. House Derailed by Democrat Revolt
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