Crypto Industry Urges Swift Regulatory Action Following House Hearing on Digital Assets

On February 11, the U.S. House Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence convened a hearing where crypto industry advocates called for urgent regulatory clarity, aiming to reverse what they view as regulation-by-enforcement tactics from the previous administration. Jonathan Jachym from Kraken emphasized the need for fundamental rules for centralized intermediaries, suggesting Congress grant spot market authority to the CFTC. Ji Hun Kim of the Crypto Council for Innovation criticized the SEC's approach under former Chair Gary Gensler, citing over 125 enforcement actions without clear guidance. Concerns were also raised about the STABLE Act, with former CFTC Chair Timothy Massad pointing out its deficiencies, including weak state standards and inadequate provisions for bankruptcy and financial crime. He also noted the Act's potential limited impact on Tether (USDt), which has a market cap of $140 billion.