The U.S. securities regulatory framework is facing challenges adapting to the rise of digital assets, according to experts who testified before a House Committee on April 9th. As highlighted by Rodrigo Seira, special counsel at Cooley LLP, the current system struggles to adequately regulate crypto companies and hinders their ability to comply with SEC regulations. Seira’s testimony focused on why the current registration process for tokens under the SEC remains elusive, even when crypto companies attempt to raise capital through legal means. Notably, few projects have successfully registered their tokens with the SEC, highlighting the difficulties inherent in the process. This issue was further addressed by Representative Bryan Steil, who acknowledged the regulatory hurdles established during the previous administration and emphasized recent progress with the STABLE Act, aimed at regulating payment stablecoins. He also discussed the GENIUS Act, which seeks to regulate stablecoin issuers through reserve requirements and Anti-Money Laundering compliance. These legislative efforts are part of a broader goal of establishing a comprehensive regulatory framework for digital assets.