US lawmakers are calling on the CFTC and SEC to form a joint working group on digital assets

Two members of the U.S. House of Representatives have requested the heads of the Securities and Exchange Commission and the Commodity Futures Trading Commission to work with contributors in the crypto area for transparency, clear, and clear rules.

In a tweet on Monday, Rep. Glenn Thompson to speak He despatched a letter with consultant Patrick McHenry to the CFTC and the SEC asking the companies “to set up a joint working group on digital assets.” Thompson and McHenry requested SEC chairman Gary Gensler and incumbent CFTC chairman Rostin Behnam to encourage “active dialogue” between federal regulators and crypto market contributors.

“A working group on digital assets will enable both the SEC and the CFTC to explore how to work together effectively using their existing jurisdictions.” “Such a working group can promote clear collaboration with innovators in the digital asset ecosystem. As Congress is contemplating further laws to handle regulatory loopholes, this work can present us with further data and readability as we make these essential coverage selections. “

The representatives added:

“Lawmakers and regulators should work collectively to strike the proper steadiness between defending innovation and any new regulation to guarantee a thriving digital asset market in the United States.”

The letter appears to be putting political pressure on the two government agencies to act independently and form a joint working group instead of waiting for the law to enter into force. In April of this year, the House of Representatives passed a bill introduced by McHenry aimed at clarifying the regulatory role of agencies such as the SEC and the CFTC in relation to cryptocurrencies.

HR 1602, the Barriers to Innovation Removal Act, gives Congress 90 days to form the above working group involving the SEC, the CFTC, and the crypto industry. However, the bill has already entered the Senate’s Committee on Banking, Housing and Urban Development.

“Nothing prevents the SEC and the CFTC from conducting related actions beneath relevant regulation,” said Thompson and McHenry.

Many crypto and blockchain experts have argued that the lack of regulatory clarity in the United States has the potential to harm the industry. Currently, the SEC, the CFTC, and the Financial Crimes Enforcement Network are handling digital asset regulations in the country, but with different regulatory claims, creating a patchwork approach that companies must navigate in order to operate legally.

Related: CFTC commissioner argues that the SEC has no authority over cryptocurrencies

The SEC usually uses the Howey Test to determine whether a token is a security, with Chairman Gary Gensler arguing that the crypto industry, including decentralized exchanges, is targeted by federal agency. However, CFTC Commissioner Dawn Stump told Cointelegraph that the government agency “doesn’t regulate crypto assets, even when they are commodities.”