By crypto.news | Created at 2024-11-14 17:08:50 | Updated at 2024-11-22 08:50:29
1 week ago
The Crypto Market Integrity Coalition called on Congress to establish a national regulatory framework for digital assets before the current legislative session ends.
In a letter dated November 14 and seen by crypto.news, CMIC urged Congress to “foster a ‘compliance mindset’” towards crypto, emphasizing that delays leave consumers unprotected and discourage innovation in the U.S.
The letter’s message to Congress argued that consumers remain vulnerable to bad actors without regulation, and American firms will lose ground to international competitors who benefit from cleaner regulatory environments abroad.
CMIC’s letter points out that while countries like the EU and Japan have adopted digital asset frameworks, the U.S. lacks clarity.
The CMIC is a group of 55 digital asset companies, including Coinbase, Robinhood, and Circle.
Calls for action on stablecoins and fraud prevention
One of CMIC’s main priorities was creating a regulatory framework around payment stablecoins. Stablecoins are cryptocurrencies designed to maintain a stable value, often pegged to the U.S. dollar, and were widely used for transactions within the digital economy.
CMIC argued that formal rules on stablecoins could promote the U.S. dollar’s use in global crypto markets, offering both economic and security benefits. The letter pointed out that clearer stablecoin regulations could help reduce fraud risks while enabling American consumers and businesses to use stable digital assets more confidently.
The coalition also highlighted that the previous “regulation by enforcement” approach — where agencies took action only after harm had occurred — created an unstable environment.
This reactive approach led to gaps where unregulated crypto firms operated freely, potentially exposing U.S. consumers to fraud or financial losses, the letter argued.
“The lack of Congressional action has left the U.S. relying solely on regulation by enforcement. This has sent a powerful signal to market manipulators and offshore, unregulated crypto firms that successful perpetration of fraud and market misconduct is only a matter of staying one step ahead of U.S. law enforcement.”
Crypto Market Integrity Coalition
A push for immediate legislative action
CMIC’s letter urged members to adapt to the current bipartisan digital asset proposals in Congress and distribute regulatory responsibilities among different governmental agencies, supporting security and compliance within the crypto industry.
“Americans are waiting…we encourage you to heed the call of millions of Americans to act now. Missing the opportunity to legislate would be a mistake that will be noticed at home and abroad. CMIC and its members stand ready to serve as a resource on behalf of regulated and responsible American industry.”
Crypto Market Integrity Coalition
