Moody’s: Regulatory uncertainty will hurt the US

Without a bipartisan approach to regulating cryptocurrencies, the US will become “less attractive to both firms and investors.” This is reported The Block with reference to the Moody’s report.

While there is a mutual understanding on consumer protection, analysts say Republicans and Democrats have different views on the rules for the digital asset market.

Experts noted the bill on a comprehensive market structure, proposed by the chairman of the House of Representatives, Patrick McHenry. The document implies a change in the legal status of cryptocurrencies from a security to a commodity.

Former congresswoman Maxine Waters said she was concerned about consumer protection during the hearing on the proposal.

“The bill appears to stop any enforcement actions SEC against crypto firms, even if they were committing fraud. This temporary registration could reward attackers with a ‘get out of jail’ card and allow them to continue harming consumers and investors,” she added.

Officials also discussed a new version of the stablecoin regulation bill. Analysts at Moody’s warned that the proposed rules could “increase regulatory arbitrage and harm consumers.”

“Separating bank and non-bank issuers of stablecoins, as well as allowing each category to be overseen by a separate authority, could lead to regulatory fragmentation and create a risk asymmetry between issuing companies,” Moody’s said.

Recall that in June, US Treasury Secretary Janet Yellen called on Congress to pass a law on cryptocurrencies as soon as possible.

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Without a bipartisan approach to regulating cryptocurrencies, the US will become “less attractive to both firms and investors.” This is reported The Block with reference to the Moody’s report.

While there is a mutual understanding on consumer protection, analysts say Republicans and Democrats have different views on the rules for the digital asset market.

Experts noted the bill on a comprehensive market structure, proposed by the chairman of the House of Representatives, Patrick McHenry. The document implies a change in the legal status of cryptocurrencies from a security to a commodity.

Former congresswoman Maxine Waters said she was concerned about consumer protection during the hearing on the proposal.

“The bill appears to stop any enforcement actions SEC against crypto firms, even if they were committing fraud. This temporary registration could reward attackers with a ‘get out of jail’ card and allow them to continue harming consumers and investors,” she added.

Officials also discussed a new version of the stablecoin regulation bill. Analysts at Moody’s warned that the proposed rules could “increase regulatory arbitrage and harm consumers.”

“Separating bank and non-bank issuers of stablecoins, as well as allowing each category to be overseen by a separate authority, could lead to regulatory fragmentation and create a risk asymmetry between issuing companies,” Moody’s said.

Recall that in June, US Treasury Secretary Janet Yellen called on Congress to pass a law on cryptocurrencies as soon as possible.

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