Congressman Patrick McHenry and Bill Huizenga, both from the House of Representatives in the US, have recently written a letter to the US Securities and Exchange Commission (SEC) expressing their concerns regarding the agency's interactions with cryptocurrency platforms that are seeking to register as exchanges. The letter expresses the representatives’ disappointment with the SEC's unwillingness to provide information regarding the companies that have attempted to do so, and their rejection of a request for a list of companies that have interacted with the SEC on the matter.

The letter goes on to criticize the SEC for attempting to hold the cryptocurrency industry to existing securities regulations and warns that a hearing may be held if their requests are ignored. It suggests that the SEC has been inadequate in its role of oversight and asserts that they must await direction from Congress if they wish to be in concordance with the law. A further letter was sent on May 9th narrowing the request and provided a May 19th deadline to fulfill it. The letter highlights how it has been “overly burdensome” for the SEC to provide this information, and that it would seek to schedule testimony from SEC personnel in the event of its failure to comply.

Considering the inherent advantages of blockchain technology, as well as the plethora of beneficial applications for technological projects, it is indisputable that the cryptocurrency industry requires proper regulation that is both beneficial to the industry, as well as compliant with the law. It is essential that Congress and the SEC make such a regulation as soon as possible so that the cryptocurrency sector remains productive and lawful. The letters sent by McHenry and Huizenga suggest that the SEC has not been doing enough to this effect, and it is necessary for them to comply with the requests of Congress, who have the power to enact regulations that meet the needs of the industry.



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