US Senator Bill Hagerty emphasizes the need for a gradual approach when creating laws to regulate cryptocurrencies. In a speech delivered on Thursday at an event organized by the Cato Institute, he stated that this approach provides certainty, allows legislative bodies to learn from what they do, and permits them to continue with feedback from the industry.
As legislative bodies return to work after the summer break and pressure continues to mount for cryptocurrency regulations, Senator Bill Hagerty suggests focusing on a gradual approach rather than a comprehensive bill.
The Importance of a Gradual Approach
Hagerty said, “My perspective is to try step-by-step processes rather than attempting to create a comprehensive package all at once,” and he shared this view on Thursday morning at an event hosted by the Cato Institute.
This statement coincides with a period when legislative bodies have been working on regulating cryptocurrencies during the summer months. Some have embraced a comprehensive approach, while others prefer to focus on specific issues.
House of Representatives and Cryptocurrency Regulations
In July, both the House of Representatives Financial Services Committee and the House Agriculture Committee, led by Republican members, advanced a bill that radically changes cryptocurrency market regulation by creating a path from digital assets as a security investment to a commodity. The bill is set to come before the full House of Representatives.
On the Senate side, in July, a group of Democratic and Republican members introduced a bill aimed at tightening existing regulations on decentralized finance.
Hagerty, who serves on the Senate Banking Committee, introduced some two-page bills last year to regulate cryptocurrencies, one of which would provide exemptions for exchanges from SEC enforcement actions.
Securities and Exchange Commission Critique
Hagerty criticized the Securities and Exchange Commission on Thursday regarding the issue he referred to as “regulation through litigation.”
“Rather than explaining a specific set of criteria, what they are doing is allowing the market to evolve and then choosing where they want to conduct a regulatory process.”Bill Hagerty