With the cryptocurrency industry facing regulatory headwinds, lawmakers in the United States and the United Kingdom are planning to bring the discussion into the public sphere. On June 13, both countries will hold high-profile hearings, marking a pivotal moment in the ongoing debate over digital asset regulation.
The UK Parliament will discuss the findings of the Crypto and Digital Assets All-Party Parliamentary Group (APPG) report on the need for cryptocurrency regulation. The debate, moderated by APPG Chair Dr Lisa Cameron MP, will begin at 11am BST.
Later today, at 2 p.m. ET, the House Committee on Financial Services will hold a hearing entitled “The Future of Digital Assets: Clarity for the Digital Asset Ecosystem.” The hearing aims to draw the attention of lawmakers and the public to digital assets, their potential risks and benefits, and the government’s role in regulating them.
SEC action forces urgent debates
These public discussions come at a time when the cryptocurrency industry is grappling with increasing regulatory scrutiny in the United States. The US Securities and Exchange Commission (SEC) recently filed lawsuits against major cryptocurrency exchanges Binance and Coinbase alleging multiple violations of securities laws. The SEC alleges that these companies operate as unregistered stock exchanges and have misled investors about their business practices and compliance efforts.
These actions by the SEC have met with significant industry opposition. Binance CEO Changpeng Zhao (CZ) has argued that the SEC’s actions constitute an attack on the entire cryptocurrency industry. Binance’s US subsidiary, Binance.US, has announced that it will end support for USD deposits and trading pairs by June 13.
Armstrong has been particularly vocal, stating that the crypto industry needs regulatory clarity, which can only come from Congress or through case law. He believes the US will eventually achieve the “right outcome” for crypto, whether through legislation, case law or after the 2024 presidential election.
American exodus
Industry concerns extend beyond SEC actions. There is a growing sense that the regulatory environment in the US is stifling innovation and pushing projects out of the country. This sentiment underscores the importance of the upcoming hearing as it moves discussion from backroom conversations at federal agencies to a more public venue.
Meanwhile, in the UK, the APPG report outlines the government’s vision for the country to become a global hub for cryptocurrency and fintech innovation. The report highlights the need for regulation to protect consumers and ensure UK leadership in this sector.
As crypto regulation debates shift to the public sphere, the markets may be pushing for more transparency and involvement in the regulatory process. Tomorrow’s hearings and debates in both countries could provide more insight into the future direction of cryptocurrency regulation, while making the debates more visible to the public.