U.S. Congress, Clash Over Cryptocurrency Regulation…Republicans “Need For Relaxation”, Democrats “Concern About Loopholes”

Cryptocurrency regulation becoming an agenda competition between parties (Source: Politico)

The U.S. Congress is showing distinct differences in stance regarding cryptocurrency regulation. According to Bloomberg, the Senate Banking Committee recently held a hearing and continues discussions aiming to prepare a bill on cryptocurrency market structure by September 30. Prior to this, the House is also set to begin its own bill review next week.

The Republican Party holds the position that regulatory relaxation should support market innovation. Tim Scott, Chairman of the Senate Banking, Housing, and Urban Affairs Committee, emphasized, "Clear and relaxed standards must be prepared to enable responsible innovation while protecting investors."

On the other hand, the Democratic Party is demanding a cautious approach, pointing out the structural loopholes and potential conflicts of interest in the bill. Raphael Warnock, a Democratic Senator, criticized by saying, "The cryptocurrency-related bill is failing to properly address the administration’s conflict of interest issues," and "Such a structure seems to be neither a fair market nor a free market."

With such clear differences in perspective between the two parties, the industry's interest is focused on how the regulatory framework for the incorporation of the cryptocurrency market into the institutional system will be coordinated.