Regulatory Clarity Needed for Digital Asset Industry, Says Senator
Senator Bill Hagerty expressed concerns about the lack of regulatory clarity for the digital asset industry, stating that it could lead to businesses moving elsewhere.
Regulating by Enforcement
Hagerty criticized the Securities and Exchange Commission (SEC) for what he believes is “regulating by enforcement.” He argued that this approach creates a challenging environment for companies looking to invest and expand, forcing them to seek more favorable regulatory environments overseas.
Efforts to Bring Clarity
As a member of the Senate Banking committee, Hagerty introduced two bills in 2022 aimed at providing more clarity to the digital asset industry. One bill focuses on stablecoins, while the other addresses digital assets more broadly.
The Stablecoin Transparency Act
The Stablecoin Transparency Act, introduced in March 2022, aims to ensure that stablecoins are backed by government securities with maturities of less than 12 months or U.S. dollars. It also requires stablecoin issuers to release audited reports of their reserves, conducted by third-party auditors.
The Digital Trading Clarity Act
The Digital Trading Clarity Act of 2022 offers a safe harbor from SEC regulation and enforcement for certain digital asset intermediaries and exchanges.
An Incremental Approach
Hagerty emphasized the need for an incremental approach to digital asset regulation, rather than attempting to address all aspects in a single piece of legislation. He believes that the blockchain technology behind cryptocurrencies has the potential for various applications and significant value creation.
Promoting American Innovation
Hagerty expressed his desire to see the development and growth of the digital asset industry in America, highlighting the potential benefits and opportunities it can bring.
