On the threshold of an American representative hearing that heard to investigate a bill to establish rules for the crypto markets, Democrats said they have been stymmed from seeking technical information on its effects from the US securities and exchange commission, according to employees.
Regulatory agencies such as SEC provide routinely technical analysis to legislators and answer questions about the potential effects of regulatory efforts, such as ACT Digital Asset Market Clarity Act, which would establish regulatory protection frames for digital assets. Democratic staff at the House Financial Services Committee presented questions to SEC on the bill, and in an orientation basic answers were previously given to Republicans, according to the democratic helpers who asked not to be named. The agency also did not offer its subject experts for the discussion, they said.
On Tuesday, the panel’s ranking Democrat, representative Maxine Waters of California, prepared a letter to SEC chairman Paul Atkins to demand “extensive technical and impact assessment” by the Crypto Market Structure Bill. She included several pages of questions in a draft reviewed by Coindesk, claiming that “full answers to the questions raised above are necessary for the American people through their representatives in Congress to determine whether this legislative proposal relates to the unique risks related to crypto, and would promote the necessary environment to take responsibility to take the necessary innovation.”
SEC “provides technical assistance to any member of Congress seeking it, including on these crypto-related bills,” a spokesman Coindesk said when asked about the complaints.
One of the employees said SEC Crypto Task Force’s Landon Zinda, who moved to the Agency from the Crypto Advocacy Group Coin Center in February, was intended to inform them but were unable to answer basic questions.
The House Committee is set to hold the Clarity Act hearing on Wednesday after recently introducing the long-term legislation, a successor of The Last Sessions’ Financial Innovation and Technology for the 21 Century Act (Fit21). The House’s Agricultural Committee, which also has jurisdiction over the regulation of digital assets, runs its own consultation at the same time.
This bill represents the central political target of the crypto industry, which claims it needs to clear US rules to encourage investors who have been waiting for the sidelines and to prevent crypto -innovators from moving abroad.
Democratic employees say members are concerned that the traditional securities companies find loopholes in this great legislation that allow them to skirt of existing securities rules.
But the Congress Democrats have not acted as a block when it comes to this, and a related stablecoin proposal that also goes through the legislative process. While some leaders, including waters, have been against promoting crypto reimbursement, other Democrats are with Republicans to move bills forward in both parliament and the Senate.
Read more: Planned crypto hearing in American house derailed by democracy riots
Update (June 3, 2025, 20:01 UTC): Updates with a response from SEC and further information from sources.
