Gary Gensler wants Congress to build a new framework for crypto oversight. A new bill aims to do just that

Quick Take

  • A new bill before the House takes an unusually comprehensive approach to establishing regulations for crypto markets. 
  • While the bill has been in the works for the past year, recent events and, especially, the work of SEC Chair Gensler have brought the regulations it addresses to the national stage.

When Representative Don Beyer introduced the new Digital Asset Market Structure and Investor Protection Act at the end of July, it took many in the crypto world by surprise. 

At 58 pages, the "Digital Asset Market Structure and Investor Protection Act" is a uniquely comprehensive approach to an issue that has been vexing regulators and legislators more and more recently.

Beyer, after all, had not produced any crypto-focused legislation before, nor had he been especially vocal about the industry.  This led to speculation by some that it was a push from other government agencies, particularly the Treasury Department.

Not the case, says the Beyer team. "We started working on this bill over a year ago. Rep. Emmer’s suggestion that this came from Treasury is inaccurate," a spokesperson told The Block, saying: 

"The dramatic expansion of the digital asset marketplace and the relatively piecemeal approach Congress has taken to regulating the market so far provided much of the impetus to develop the comprehensive proposal we introduced last week."

There's no question the bill is timely. The controversial appearance in the Senate infrastructure bill of provisions to increase IRS reporting requirements for crypto network participants resulted in a surge of public visibility, particularly of the industry's presence in Washington, DC.  

Wednesday morning, the public learned of the latest in the exchange between Gary Gensler, chairman of the Securities and Exchange Commission, and Senator Elizabeth Warren on crypto regulation. At the beginning of July, Warren had asked Gensler what sort of congressional authorization the SEC would need to do more in the crypto markets. Gensler's response today included many of the areas that Beyer's bill addresses. 

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