Crypto Clash: Republicans Challenge SEC’s Rule Change, Igniting a Fight for the Future of Crypto

In a clash of ideologies, Republican members of the House Financial Services Committee have taken a bold stand against the Securities and Exchange Commission (SEC). With an impassioned letter these lawmakers have declared war on what they perceive as stifling regulation that threatens to smother the digital asset ecosystem and drive innovation overseas. As the battle lines are being drawn, Democrats and Republicans continue to find themselves at odds, offering diverging visions for the future of crypto.

On June 13th, all Republicans members of the House Financial Services Committee sent a letter to the Securities and Exchange Commission (SEC) demanding they immediately rescind the proposed rule to change the definition of “exchange”.

This proposed rule would change the definition of “exchange” to include “systems that offer the use of non-firm trading interest and communications protocols to bring together buyers and sellers of securities”.

The SEC proposed this amendment back in March of 2022.

The group of Republican lawmakers argued, in their letter, that the proposed rule change will “effectively shut down development of the digital asset ecosystem and continue to stagnate U.S. technological innovation”.