CFTC, Coinbase, and Robinhood to Testify Before Congress Today on Recently Introduced Crypto Law

Updated: 06 June 2023

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CFTC, Coinbase, and Robinhood will testify in Congress just days after Congress introduced a game-changing crypto bill in the midst of a cryptocurrency price surge.

Recently, American lawmakers introduced ‘functional framework’ legislation to give the nation’s Bitcoin and cryptocurrency businesses legislative certainty.

As a result of recent price increases for Bitcoin, Ethereum, and other cryptocurrencies, the market expects to grow to $350 billion by the end of 2023. Additionally, this is happening at the same time as a current bill proposal pertaining to cryptocurrencies.

The three will discuss how their respective groups feel about a measure that, among other things, would classify some cryptocurrency assets as digital commodities.

Coinbase Chief Legal Officer Paul Grewal stated:

“Tomorrow I have the honor of testifying on Capitol Hill before the House Committee on Agriculture to share Coinbase’s views on the Digital Asset Market Structure Discussion Draft […] released last week.”

Today, I testified on proposed regulation of #digitslcommoditysssets in front of the House Agriculture Committee. Read my testimony here: https://t.co/DbiDBF79sP

— Rostin Behnam (@CFTCbehnam) June 6, 2023

Dan Berkowitz, a former CFTC Commissioner, Walt Luken, the creator of FINAconnect, and Chris Giancarlo, a former CFTC Chairman, are the other three witnesses called to testify.

Grewal also provided a summary of the key points of his evidence in a post on Twitter on June 5.

“The United States is lagging. We cannot afford to ignore the cryptocurrency market. In contrast, other markets benefit from our absence by creating rules and regulations that allow the sector to thrive and run the danger of offshoring employment, investment, and technological leadership, Grewal stated. He continued, saying:

“We need a clear rulebook in the US to realize the full promise of crypto. Until rules and regulations are developed that reflect the realities of this new economic system, we will not be able to keep our financial system up to speed, May not realize full potential to make fair and more affordable.”

Game-Changing Crypto Bill

Legislators in the United States introduced a new proposal known as a “working framework” due to growing worries that a potential cryptocurrency crisis is about to erupt. This initiative aims to establish precise regulations that will provide companies operating in the country’s Bitcoin and cryptocurrency sectors with transparency and assurance.

In an effort to create a “statutory framework for digital asset regulation intends to provide clarity, fill regulatory gaps, and foster innovation, while providing adequate consumer protections,” Republican congressmen Patrick McHenry and Glenn Thompson released the Digital Asset Market Structure Discussion Draft on June 2.

Paul Grewal, in a statement, mentioned:

“Crypto is solving real-world problems, and we need a clear path forward to protect responsible innovation.”

Additionally, he also believes that Congress needs to lay out clear guidelines for regulating digital assets and the underlying technologies.

These guidelines, however, outline when to handle digital assets as securities, when to regard them as commodities, and when certain financial laws might not be appropriate.

According to Paul Grewal, the new draft is a “thoughtful effort” and “a major step forward,” and he urges lawmakers on both sides of the aisle to take action quickly.