The U.S. Financial Services Committee’s Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence held a hearing on digital asset market structure focused on the legal uncertainty around how U.S. securities laws apply to digital assets and what legislative changes may be needed. Discussion covered which digital asset activities implicate securities laws, why existing regulatory frameworks may not fit certain activities, and options for congressional action to establish clearer rules. Committee leaders linked the hearing to broader legislative work, including the Committee’s advancement of the STABLE Act on payment stablecoins, and argued for a comprehensive framework for digital asset markets. Members also criticized the Securities and Exchange Commission’s enforcement-led approach under former Chair Gary Gensler. Witnesses from Cooley LLP, WilmerHale, and Polygon supported congressional action and a more predictable regime, pointing to compliance uncertainty, investigation and defense costs, product withdrawals, and some firms limiting or ending U.S. operations, alongside calls for appropriate disclosures and consumer protections.
U.S. Financial Services Committee 2025-04-09
U.S. Financial Services Committee’s Digital Assets Subcommittee holds hearing on aligning securities laws for digital assets
The U.S. Financial Services Committee’s Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence held a hearing on digital asset market structure, addressing legal uncertainties in applying U.S. securities laws and potential legislative changes. Discussions included the inadequacy of current frameworks, the need for clearer rules, and criticism of the SEC's enforcement approach. Witnesses advocated for congressional action to reduce compliance uncertainty and support a more predictable regulatory regime.