"GOP Lawmakers Launch Blockchain Caucus to Tame Crypto Wild West"
1min read Republican leaders have formed a new group, the Blockchain Caucus, to develop a comprehensive framework for cryptocurrency regulation in the United States. The caucus, led by Representatives Tom Emmer and Warren Davidson, aims to create a clear and consistent regulatory environment for the crypto industry, fostering innovation and protecting consumers.
The formation of the Blockchain Caucus comes at a time when the crypto market is experiencing significant growth and regulatory challenges. The U.S. Securities and Exchange Commission (SEC) has been adjusting its staffing to better address the complexities of the crypto market. Jorge Tenreiro, the former chief litigation counsel at the SEC, has been appointed to manage the department responsible for IT system maintenance. This strategic shift underscores the SEC's evolving focus on technological infrastructure supporting regulatory frameworks.
In addition to Tenreiro's appointment, the SEC has reallocated another legal expert who was instrumental in developing essential guidance regarding cryptocurrency custody accounting. This guidance had previously imposed significant barriers, limiting banks from offering crypto custody services to their clients. The regulatory landscape in the United States is becoming increasingly complex, as the SEC adjusts its staffing to better align with the challenges posed by the growing crypto market.
The Federal Deposit Insurance Corporation (FDIC) has also been fostering engagement with the crypto industry while maintaining regulatory compliance. The FDIC has engaged with President Trump's Digital Asset Markets Working Group to establish clearer pathways for institutions to engage in crypto activities while maintaining regulatory compliance.
Meanwhile, the DeFi Education Fund, a crypto advocacy group, has urged the U.S. Department of Justice (DOJ) to reconsider its approach to holding DeFi protocol developers accountable for users' actions. The group believes that developers of DeFi protocols should be shielded from liability for user actions, mirroring the responsibility distinction between car makers and drivers. The authors of the blog post argued that targeting developers under laws such as Section 1960 could create harmful precedents, potentially expanding legal risks across the crypto industry.
The Blockchain Caucus' efforts to develop a comprehensive crypto framework aim to address these regulatory challenges and promote a balanced approach to crypto regulation in the United States. The caucus will work with industry stakeholders and regulatory bodies to create a clear and consistent regulatory environment that fosters innovation and protects consumers.
