Crypto Legislation Passes House Financial Services Committee

Summary of Crypto Legislation Passage

• A suite of crypto legislation passed the House Financial Services Committee this week.
• Sam Bankman-Fried surrendered Caroline Ellison’s personal writings to court.
• SEC commissioner Hester Peirce called watchdog’s public accounting warning into question.

House Financial Services Committee Passes Crypto Legislation

The House Financial Services Committee passed a suite of crypto legislation this week, paving the way for increased regulation in the cryptocurrency sector. The new legislation includes measures that would protect investors and encourage innovation in digital markets, while also providing oversight for firms dealing with cryptocurrencies.

Sam Bankman-Fried Surrenders Caroline Ellison’s Writings

Sam Bankman-Fried, CEO of FTX Exchange, has surrendered Caroline Ellison’s personal writings to court as part of a case involving alleged insider trading activity at his firm. The decision is seen as a sign of good faith on behalf of Bankman-Fried and could help settle the matter quickly.

Ritchie Torres Calls Gensler’s SEC ‘Arbitrary and Capricious‘

Democratic congressman Ritchie Torres criticized Gary Gensler’s nomination to lead the US Securities and Exchange Commission (SEC) as “arbitrary and capricious” due to Gensler’s past experience advocating for tighter cryptocurrency regulations. Gensler previously served as chairman of the Commodity Futures Trading Commission (CFTC).

SEC Commissioner Hester Peirce Questions Watchdog’s Warning

SEC Commissioner Hester Peirce questioned why the regulator wants to discourage good-faith efforts to provide more transparency for the cryptocurrency industry on July 27th after SEC chief accountant Paul Munter warned that accounting firms risk legal liabilities with their non-audit works for crypto firms. Peirce conceded that crypto firms and their accountants should be clear on proof of reserve but also argued that such warnings may dissuade good actors from participating in the space or hinder innovation in digital markets.