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US Congress Seeks Clarification from Banks on SEC’s Cryptocurrency Asset Rule

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It is reported that Patrick McHenry, chairman of the Financial Services Committee of the United States House of Representatives, and Senator Cynthia Lummis, wh…

US Congress Seeks Clarification from Banks on SECs Cryptocurrency Asset Rule

It is reported that Patrick McHenry, chairman of the Financial Services Committee of the United States House of Representatives, and Senator Cynthia Lummis, who drafted the cryptocurrency legislation, sent a letter to several banking institutions on Thursday asking them how to deal with a controversial announcement of the Securities and Exchange Commission (SEC), which suggested that financial institutions should include customers’ cryptocurrency assets on their balance sheets.

American legislators believe that SEC’s accounting policy will undermine the safe custody of cryptocurrency

Interpretation of the news:


On Thursday, Patrick McHenry, the chairman of the Financial Services Committee of the United States House of Representatives, and Senator Cynthia Lummis, who drafted the cryptocurrency legislation, sent a letter to several banking institutions seeking guidance on how to deal with a recent announcement by the Securities and Exchange Commission (SEC) regarding cryptocurrency assets. The SEC has suggested that financial institutions should include customers’ cryptocurrency assets on their balance sheets, which has sparked controversy in the cryptocurrency market.

The letter sent by McHenry and Lummis highlights the concerns that have been raised by the SEC’s announcement. The lawmakers have requested that banking institutions provide clarity on how they plan to comply with the SEC’s rule and what steps they will take to ensure that their customers’ cryptocurrency assets are properly accounted for.

The SEC’s announcement has been met with resistance from some members of the cryptocurrency industry who argue that it would be difficult for financial institutions to accurately account for cryptocurrency assets due to their decentralized nature. Additionally, many in the industry believe that this rule will stifle innovation and prevent cryptocurrency from gaining mainstream acceptance.

The letter sent by McHenry and Lummis is a significant step towards clarifying the SEC’s stance on cryptocurrency assets. It shows that lawmakers are taking the issue seriously and are willing to work with banking institutions to find a solution that benefits both the industry and consumers.

In conclusion, the letter sent by McHenry and Lummis to banking institutions is an important development in the ongoing debate surrounding how to regulate cryptocurrency. The SEC’s announcement has raised concerns within the industry, and this letter highlights the need for further clarification. It remains to be seen how banking institutions will respond to the letter and whether the SEC will make any changes to its rule. Nonetheless, this letter demonstrates the continued interest of Congress in the fast-evolving world of cryptocurrency.

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