‘Time is not on our side’ to provide regulatory clarity on crypto, US lawmaker says

New Jersey Representative Josh Gottheimer said US lawmakers needed to pass legislation clarifying the role of regulators over crypto or venture companies taking their business overseas.

After a Sept. 27 roundtable discussion with Commodity Futures Trading Commission Chairman Rostin Behnam and many industry leaders, Gottheimer said some of the crypto bills proposed by members of the US House of Representatives and Senate were “building blocks” aimed at achieving regulatory clarity. Although he said he was “bullish” on the Digital Commodities Consumer Protection Act, Gottheimer suggested the bill — which aimed to give the CFTC greater authority over the crypto spot market — wasn’t the only possible legislative path.

“I’m very open to any solution as long as it provides some of the regulatory certainty that we need to provide the space so that we stop losing businesses and startups and entrepreneurs who are interested in planting a flag here and growing here,” said Gottheimer. “Whether it’s the Stabenow bill or other bills — Lummis and others, [and the bill] they work with in the House Financial Services Committee — is less important than actually providing clear guidance and handrails.”

He added:

“Time is not on our side. We need to move, choose a regulator and give the market the security and guardrails it deserves […] The risk of doing nothing is, for me, a big risk.”

Gottheimer, a member of the House Financial Services Committee, introduced the Stablecoin Innovation and Protection Act in February — legislation aimed at getting the US Federal Deposit Insurance Corporation back stablecoins in a manner similar to fiat deposits. However, the larger question of whether cryptocurrencies and stablecoins largely fall under the CFTC’s or the Securities and Exchange Commission’s regulatory purview seems to be looming over many lawmakers.

Related: Industry representatives are proposing improvements to the Stabenow–Boozman crypto regulatory law

Senate Agriculture Committee Chair Debbie Stabenow and Ranking Member John Boozman introduced the Digital Commodities Consumer Protection Act in August. In June, Senators Cynthia Lummis and Kirsten Gillibrand sponsored the Responsible Financial Innovation Act, a bill that included clarification for the CFTC’s and SEC’s roles over crypto as well as “stablecoin regulation, banking, digital asset tax treatment and interagency coordination.” Many lawmakers and those in the crypto industry have also criticized the SEC for taking a “regulation by enforcement” approach to crypto.

“I think there could be great harmony between all these regulatory bodies,” Gottheimer said. “Obviously we have work to do in Congress to provide some of that guidance and direction.”