In a recent development, Patrick McHenry, the Chairman of the US House Financial Services Committee (FSC), made an announcement regarding the markup of several legislations aimed at providing regulatory clarity for the digital asset ecosystem, including cryptocurrencies, blockchain development, and stablecoin payments.
Among the legislations scheduled for markup on July 26, three bills stand out for their focus on the digital asset space. The first one, H.R. 4763, known as the Financial Innovation and Technology for the 21st Century Act, seeks to establish a digital asset market structure framework tailored to the unique characteristics of digital assets. This framework aims to provide a clearer regulatory environment for participants in the digital asset market.
The second bill, H.R. 4766, titled the Clarity for Payment Stablecoins Act of 2023, is the brainchild of Chairman Patrick McHenry. Its primary objective is to bring about regulatory clarity for stablecoins intended for use as a means of payment. Stablecoins, which are cryptocurrencies pegged to a stable asset like a fiat currency, have gained popularity for their potential use in payments and remittances. This bill addresses potential regulatory ambiguities surrounding stablecoins and ensures a safer environment for users and investors.
The third significant legislation set for markup is H.R. 1747, the Blockchain Regulatory Certainty Act. This bill proposes to exempt blockchain developers from the need to obtain licenses, on the condition that their activities do not involve dealing with cryptocurrencies. By exempting these developers from cumbersome licensing requirements, the legislation aims to foster innovation and growth in the blockchain development space, while still maintaining proper regulatory oversight for cryptocurrency-related activities.
US on fighting crypto crimes
The decision to conduct the markup on these crucial bills was made a day after introducing the Financial Innovation and Technology for the 21st Century Act, highlighting the urgency and importance of establishing a functional regulatory framework for the rapidly evolving digital asset industry.
U.S. Representative French Hill, who serves as the Chairman of the Subcommittee on Digital Assets, emphasized that a robust regulatory framework is vital to protect investors from financial fraud. He cited the potential benefits of the proposed legislation, stating that it would not only prevent instances like FTX’s alleged stealing of customer funds but also create clear rules of the road and consumer protections for market participants.
Simultaneously, in a bid to tackle crypto-related crimes, the United States Department of Justice (DoJ) announced plans to bolster its crypto crime team. The DoJ will merge two existing teams, the Computer Crime and Intellectual Property Section (CCIPS) and the National Cryptocurrency Enforcement Team (NCET), into a single, larger structure with additional resources. This move aims to significantly increase the number of criminal division attorneys available to handle cryptocurrency-related cases, more than doubling the current capacity.
With these legislative and regulatory initiatives and the DoJ’s strengthened commitment to addressing crypto-related crimes, the United States government is taking significant steps toward creating a well-defined and secure digital asset ecosystem, fostering innovation while protecting consumers and investors. The upcoming markup on July 26 will be a crucial event to watch, as it could pave the way for substantial developments in the regulation of cryptocurrencies, blockchain, and stablecoin payments.
