Crypto Regulation: Key Congress Hearings, SEC Registration Strain In Spotlight

Crypto regulation is taking a new shape in the United States, as many ongoing activities in the industry mark a new phase for the sector.One is the Senate Banking Committee’s advancement of Michelle Bowman’s nomination to become the Federal Reserve’s top bank cop.Michelle Bowman’s Nomination Passed to Full SenateOn May 6, the Senate Banking Committee advanced Michelle Bowman’s nomination to the Federal Reserve and Congress.This move brings her a step closer to receiving a confirmation vote.Bowman will take over from Michael Barr, who served as the Vice Chair of the Federal Reserve for Supervision, should the vote eventually come.Barr resigned in February 2025, but before then, he had a strong foot in the banking sector.With Bowman, there are expectations that her touch on banking regulation would be much lighter with a linked implication for crypto.The public is confident in her potential owing to the approaches she has employed in the past.She is one of those who have consistently asked for more tailored oversight for the financial industry.Eventually, she criticized one proposal requiring banks to hold more capital to serve as a buffer against losses.A month ago, she vowed to overhaul how the Fed monitors large banks. She also has plans to encourage innovation and pursue “pragmatic” rules for the financial system.IRS Appoints Trish Turner to Lead Crypto UnitIn the same spirit of nominations and appointments amid the crypto regulation trend, Trish Turner, one of the top professionals at the Internal Revenue Service (IRS), has been nominated to lead the crypto division of the tax office.Sulolith Mukherjee and Seth Wilkes previously held this position for more than a year before they eventually exited the agency.Mukherjee served as the Executive Director of compliance and implementation. Wilkes was the Executive Director of digital asset strategy and development.Turner has held several key positions before now, including senior counselor in the division.She prides herself on being a seasoned tax practitioner with over two decades of experience.Her appointment comes amidst a broader shift in political leadership in the United States and push for crypto.Donald Trump’s second administration as US president has played a key role in establishing a pro-crypto stance in the region.He has taken several steps to favor the crypto sector, including signing an executive order barely 24 hours after assuming office.Most of his actions are geared towards changing the US Securities and Exchange Commission (SEC) stance.Given the changes, the IRS shared a crypto tax requirement to report transactions.This requirement, which is intended to foster better tax compliance and more accurate reporting of digital asset transactions, will apply to brokers on centralized exchanges (CEXs).Hiro Systems Confession and Key TakeawaysIn July 2024, the US SEC closed a three-year investigation into Hiro Systems, formerly Blockstack.The agency took this step without recommending enforcement action. Apparently, the SEC began to probe the firm after questioning its $70 million token sales from 2017 to 2019.Crypto America host and journalist Eleanor Terrett recently pointed out that Hiro spent more than $15 million on compliance with SEC reporting requirements.Image Source: Eleanor Terrett on XStill, the SEC investigated Hiro following the harsh crypto regulation setting of the past administration.The broader crypto sector expects the Commission to make better decisions in the future, especially with Paul Atkins’ confirmation as the new SEC Chair..The post Crypto Regulation: Key Congress Hearings, SEC Registration Strain In Spotlight appeared first on The Coin Republic.