US Representative Patrick McHenry has lashed at the Securities and Exchange Commission (SEC) and other concerned US regulatory bodies for their regulatory operations concerning virtual assets. The official called for a stand-alone regulatory body for crypto and other virtual assets.

The representative’s remarks follow recent increasing criticism and accusation of the SEC and related government agencies in the country on their governance of the booming cryptocurrency industry. Until the report, the United States didn’t hold any solid national legislation on cryptocurrencies and other virtual assets.

Defining Digital Assets

Rep. McHenry asserts that virtual assets could neither bear a security nor commodity identity, as he calls for a comprehensive definition of virtual assets. The government official also says that Bitcoin stands as an embodiment of all virtual assets.

While calling for a stand-alone regulator for digital assets apart from the current regulators, McHenry says that Congress is responsible for appraising what definition virtual assets becomes official.

The representative claims that getting a comprehensive outlook of the meaning of virtual assets would help eliminate the current absence of clarity at the federal level on them. Additionally, McHenry says a comprehensive definition of virtual assets would help set up a stand-alone regulatory entity to watch over virtual assets.

McHenry also accused the current regulatory bodies of lacking sufficient knowledge of the booming virtual assets industry. Different crypto enthusiasts across the US await possible country moves regarding basic definitions of the industry.

Ripple’s Case against the US SEC

The ongoing long-standing court proceedings between Ripple and the SEC clearly express the challenges US regulators have with basic definitions in the market. Reports say that the SEC refers to Ripple’s XRP as a “security,” a definition that the payments provider rejects.

Meanwhile, recent court judgments indicate that the court proceedings might continue till next year. Analysts say the result of the court trials would offer a marked change in the regulatory outlook for the SEC.

Other Latest Developments in Crypto

One of the leading payments firms worldwide, PayPal declares net revenue of approximately 6.5 billion USD in Q1 2022. The firm reportedly made 8% more than it did in Q1 2021, exceeding previous forecasts on the market performance.

Additionally, the company’s adjusted proceeds dipped by 28% to 0.88 USD on each share. PayPal also says it saw a remarkable increase in the number of payments it processed, 323 billion USD, within the first quarter of 2022. 

Compared to last year’s same period, the quarter’s trading volume reportedly increased by 15%. However, the company says that the volume of transactions on the platform may plummet because of Ukraine’s crisis and increasing inflation.

Meanwhile, a senior official at the European Central Bank (ECB), Fabio Panetta, calls for coordinated efforts from international and national regulatory agencies in the virtual assets industry. 

Comparing the boom in the digital assets market to the 19th-century gold rush, Panetta alleged the unreliability of virtual currencies is the exact opposite of what their enthusiasts promise the global economy. 

However, the ECB executive admits increasing interest in virtual assets and quick settlements while calling on central banks globally to create their digital currencies. Panetta also hinted that the ECB is concentrating on releasing a virtual Euro for use within its regions.