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SEC members themselves are disgusted with their institution these days. Gensler faced a week of negative discrimination. Crypto companies were fined for 100-year-old rules they didn’t understand, without guidance for years. Fortunately, Congress ordered an end to this circus last week.
FIT21 Crypto Act
The bill allowing the CFTC to also define cryptocurrencies as commodities passed the House with bipartisan support. However, the Financial Innovation and Technology Act for the 21st Century (FIT21) cannot be implemented immediately. Considering the lack of coordination between institutions, this could take years.
Commodity Futures Trading Commission (CFTC) Commissioner Summer Mersinger made some hopeful yet frustrating remarks at her latest event.
“If you think legislation takes a long time, rulemaking takes even longer. We haven’t even completed some Dodd-Frank rules yet.”
The Dodd-Frank Act began discussions in 2010 and was later approved. It was initiated during the Obama era after the 2008 crisis. It aimed to increase oversight and transparency to protect investors. Subtracting 2010 from 2024 gives us 14. This number is the essence of Summer Mersinger’s message. Necessary steps have still not been fully taken.
“Rulemaking is a slow, very slow process. You think the law is signed, the President signed it, and everything is done. This is just the first step. And then it really comes to where the rubber meets the road. So, it can take some time to complete the rules.”
Congress Had Enough
There were many disagreements between regulatory bodies like the Securities and Exchange Commission (SEC) and CFTC regarding the definition of cryptocurrencies. These disagreements still exist and will need to be resolved after Senate and Biden approvals. However, considering the bipartisan support in the House, it is clear that they are tired of the SEC.
SEC Commissioner Hester Pierce believes Congress’s interest in crypto legislation is a response to the agency’s approach to crypto firms.
“I think one of the reasons we are at this point is that Congress is tired of looking at what the SEC is doing, which is not providing clarity to people.”
