Lawmaker says that SEC jurisdiction over crypto exchanges is a power grab

Crypto markets are unregulated, and the authorities are trying their best to establish control over the markets. Recently a US Lawmaker, Patrick McHenry, said that SEC jurisdiction over crypto exchanges is just a power grab. This will hinder innovation in the industry and will hold back the US. It is important to note that the SEC could ask for control over the securities exchanges but asking anything more than that is too much.

SEC’s efforts to gain control

The recent regulation in the space is not something we should be relaxed about. Even though no laws have been passed yet, whenever they do, it won’t be a good thing. Senator Warren, who is one of the main contributors to the recent regulation (the one everyone disliked) has said, that authorities are required to make sure that the space is regulated. She thinks that authorities control over the space will help protect investors from the risks that lie in the sector.

The authorities said in advance that exchanges are not allowed to list securities. And it seems fair that the SEC asks for control over them. But now, it seems that they are getting hungry for power as the SEC has asked for control over all exchanges. And we know where there is too much control, there is very little innovation. If the SEC controls digital currency exchanges, then the markets will be affected.

Patrick thinks what we need are proper laws that regulate the space but not control it. The process should be transparent as the crypto sector will be great for the US economy. He further added that the US doesn’t need another deal between Gary Genser and Elizabeth Warren.

There is a bit of a problem.

Both the amendments, one that was in favour of crypto, one against, did not pass. But then another compromise was made, which was not very good but not completely bad. And in order for that amendment to pass, it was necessary that all senators support it. But at the last moment, one of them backed out, saying that they will get his support only if the military amendment proposed by him passes. This means crypto markets are hanging in a thin line right now.

What are your thoughts on the SEC trying to grab jurisdiction over crypto exchanges? And do you think they will be able to get this power? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.

Also Read: Neuberger Berman adds Bitcoin and Ethereum to their portfolio.