Trump Administration Reportedly Ready To Lay Out Crypto Rules

President Trump’s regulators reportedly said they were ready to lay out rules that would help foster the crypto industry’s growth after legislation on the matter ran into an unexpected setback.

“In the long term, it’s better to have legislation,” Securities and Exchange Chair Paul Atkins told The Wall Street Journal. He expects the legislation to pass this year, but added that “we can make do with our authority,” as per the report.  

Commodity Futures Trading Commission and SEC expect to sign a memorandum of understanding to formalize their cooperation. 

Division Of Work

SEC and CFTC plan to release new details on how they will collaborate on oversight of the cryptocurrency market, as per the report. The joint efforts down the line could include deciding which crypto assets fall under each other’s jurisdiction, an issue regulators have at times clashed over in the past. 

As per report, SEC may focus on building a regulatory framework around tokenized securities, while the CFTC focuses on digital assets that regulators view as akin to digital collectibles or commodities. 

“We need to work out a clear taxonomy and stick within our lanes when it comes to enforcement,” said Selig. 

Markup Session 

The U.S. Senate Agriculture Committee is scheduled to hold a markup session for the CLARITY Act on Thursday. The debate could advance commodities rules even if the Banking Committee side of things is stalled.

Approval of the Agricultural Committee’s half of the crypto market structure bill could prove to be a catalyst for the market. It would greenlight Bitcoin and Ethereum to trade like "commodities". 

BTC Under The Pump

Bitcoin plunged 6.3% to $83,384, hitting its lowest levels in more than two months.

According to data from sosovalue Bitcoin ETF recorded $160.1 million in outflows so far this week, and if the trend follows it will be the second week in a row when there will be outflows in Total Bitcoin Spot ETF. 

Ethereum (ETH), Solana (SOL) and other major cryptocurrencies were also in the red. 

Retail sentiment around BTC trended in 'extremely bearish' territory amid 'normal' message volume. 

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Also Read: MSTR, BMNR Stocks Are Nosediving Today – Why Such A Selloff?
 

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