- Prominent legal officers and a former regulator are set to testify in front of US congressional committees on Wednesday.
- The hearing entails unpacking digital asset regulation amid ongoing tension between the industry and federal agencies.
- Kraken CLO Marco Santori among witnesses in the meeting that will begin at 9:30 a.m. ET on Wednesday, May 10.
Kraken Chief Legal Officer (CLO), Marco Santori, will be among the prominent legal professionals joining former Commodity Futures Trading Commission (CFTC) chair Timothy Massad in testifying before the US Joint House Congressional Hearing scheduled for Wednesday, May 10 at 9:30 a.m. ET.
1/ Tomorrow, Congress will hold a historic joint hearing between both the Agricultural and Financial Services committees on creating new, fit-for-purpose rules for crypto.— Marco Santori (@msantoriESQ) May 9, 2023
I'll testify live.
Kraken CLO and former CFTC Chair to testify at Joint House Congressional Hearing
The top legal officers and the ex-CFTC regulator will explain digital asset regulation amid growing tension between the cryptocurrency industry and federal agencies. Based on the announcement, the departments to make attendance include The House Financial Services Subcommittee on Digital Assets, Financial Technology and Inclusion with the House Agriculture’s Commodity Markets, and Digital Assets and Rural Development Subcommittee.
The Kraken’s CLO brings a wealth of knowledge and experience, having practiced crypto law for over a decade. Despite this remarkable accomplishment, the legal head has never pushed for new laws. Nevertheless, he intends to do so tomorrow and has shed light on his prepared testimony. This goes to say the level of importance the meeting will hold. He says:
I’ll explain why the US situation is untenable, how other countries are speeding ahead, and how we can improve the way regulators interact with crypto.
According to Santori, Congress needs to give regulators the tools requisite for promoting “safe, efficient markets or to protect consumers.” In his opinion, the current environment of endless litigation fails to protect consumers or leaves them vulnerable by preventing companies like Kraken from investing, hiring, or allocating time effectively, thereby barring their move to plan their future.
Santori to present a new approach
As a result, Santori will advocate for Congress to use an approach that will see the crypto sector regulated under common rules between all regulatory bodies- CFTC and the Securities and Exchange Commission (SEC).
I believe this approach has several advantages. It is simple. It focuses on the core of the problem. It is practical and feasible. It can be implemented quickly and efficiently. It does not rewrite existing law in ways that may create more confusion than clarity. And it is incremental.
Santori notes that the rules could be structured by establishing a new self-regulating organization under the leadership of both departments. Notably, the organization will be responsible for enforcing the rules.
7/ Tomorrow I’ll ask congress to step in and change this for the better.— Marco Santori (@msantoriESQ) May 9, 2023
You can love or hate-watch it at 9:30am ET tomorrow here: https://t.co/akuaNAj3lL
Others expected to take the stand include the head of global technology firm Republic Andrew Durgee, partner at Wilmer Cutler Pickering Hale and Dorr LLP, Matthew Kulkin, and CLO at Web3 Foundation, Daniel Schoenberger.
In a written testimony, Durgeem has cautioned that the US is at risk of falling behind other countries, saying
The lack of clear and supportive regulation in the United States may deter businesses and investors from engaging in the domestic digital asset market, which could have several adverse consequences.
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