Crypto Industry Prepares for Impact as Two Major Congressional Hearings Scheduled for June 5th
The crypto industry should take note of two important hearings taking place in the US Congress tomorrow. The first hearing, led by the House Appropriations Subcommittee, will discuss the Fiscal Year 2025 Financial Services and General Government Bill and its impact on Staff Accounting Bulletin No. 121 (SAB 121) and the Securities and Exchange Commission (SEC) budget. This hearing will have significant implications for the SEC’s ability to regulate the crypto industry.
Following shortly after, the House Committee on Financial Services will hold a hearing led by the Republican Subcommittee on Digital Assets. This session will focus on the Tokenization Reporting Act and its potential for creating more efficient markets through the tokenization of real-world assets.
For those interested in attending or following along, here are the details of the hearings:
– 8:30AM ET: House Appropriations Subcommittee Markup of Fiscal Year 2025 Financial Services and General Government Bill, where SAB 121 and the SEC budget will be discussed.
– 9:00AM ET: [Link to be provided]
The first hearing will address the proposed budget cuts to the SEC, which could have implications for crypto regulation. The bill suggests a significant reduction in funding, with the SEC’s operating expenses allocated $2 billion, a decrease of $589.3 million from the FY25 Budget Request and $144.3 million less than the FY24 enacted level. The Enforcement Division’s budget will also be cut by $168 million, limiting it to $644 million. Additionally, the bill includes policy riders to restrict the SEC’s authority.
The General Services Administration (GSA) will also be under scrutiny, with a proposed budget of $8.947 billion from the Federal Buildings Fund, significantly lower than the FY25 request and FY24 enacted level. The bill imposes restrictions on GSA’s real property purchases and suspends spending on the FBI Headquarters until a new plan is submitted.
The second hearing will focus on the Tokenization Reporting Act and its potential benefits for market efficiency. The Subcommittee will discuss the need for a clear regulatory framework to support tokenization and explore how tokenization can reduce transaction costs and improve settlement times.
Tags: Crypto Regulations