The Crypto Market Integrity Coalition calls for a national regulatory framework to protect consumers and encourage innovation.
CMIC Calls for Immediate Action
On November 14, the Crypto Market Integrity Coalition (CMIC) sent a strong message to U.S. lawmakers, urging Congress to establish a national regulatory framework for digital assets before the end of the current legislative session. The letter highlighted the pressing need for action, emphasizing that delays in regulation leave consumers unprotected and hinder innovation within the U.S. crypto industry.
Regulatory Gaps Threaten U.S. Competitiveness
The coalition, which represents 55 major digital asset companies such as Coinbase, Robinhood, and Circle, warned that the lack of clear regulation in the U.S. puts both consumers and American firms at a disadvantage. Countries like the EU and Japan have already implemented regulatory frameworks for digital assets, but the U.S. has lagged behind, creating a regulatory gap that exposes consumers to bad actors and puts American firms at risk of falling behind international competitors.
Importance of Stablecoin Regulations
One of CMIC’s primary goals is the establishment of formal rules surrounding stablecoins, cryptocurrencies designed to maintain a stable value, often pegged to the U.S. dollar. The coalition argues that clearer stablecoin regulations could boost the U.S. dollar’s use in the global crypto markets, providing both economic and security benefits. Such regulations would also help reduce fraud risks, enabling U.S. businesses and consumers to use stable digital assets more confidently.
The Downside of ‘Regulation by Enforcement’
The letter criticized the current “regulation by enforcement” approach, where regulatory bodies only take action after harm has occurred. This reactive method has created an unstable environment, allowing unregulated crypto firms to operate without oversight and exposing consumers to potential fraud and financial losses. CMIC stressed that this lack of proactive regulation has sent a dangerous signal to market manipulators and offshore, unregulated firms.
A Call for Legislative Action
CMIC urged lawmakers to act quickly and support bipartisan efforts in Congress to pass digital asset legislation. The coalition emphasized that distributing regulatory responsibilities among various governmental agencies would enhance security and compliance across the crypto industry. The letter concluded with a call to action: “Americans are waiting…we encourage you to heed the call of millions of Americans to act now.” The coalition reiterated its commitment to working with lawmakers to ensure that the U.S. maintains a competitive edge in the global crypto market.
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