Coinspeaker
US Congressional Committee Votes in Favor of Crypto Regulatory Bills
The United States House Financial Services Committee has taken a significant step toward providing regulatory clarity to the cryptocurrency industry. On July 26, the Committee, including Reps. Jim Himes and Ritchie Torres, greenlighted two proposed crypto bills to create a well-defined regulatory framework for the rapidly expanding digital economy.
The first bill, the Financial Innovation and Technology for the 21st Century Act, secured a 35-15 vote to establish clear rules for crypto firms concerning registration with either the Commodity Futures Trading Commission (CFTC) or the Securities and Exchange Commission (SEC). Additionally, the bill outlines a process for firms to certify with the SEC that their projects are decentralized, enabling them to register their offerings as commodities with the CFTC.
The proposed legislation was introduced on July 20 by the committee to protect consumers and establish a clear rule for participants. Rep. French Hill believes that the laws would have prevented the collapse of FTX and the alleged mismanagement of users’ funds.
“This legislation would not only have prevented FTX from stealing billions of customer funds but also establish robust consumer protections and clear rules of the road for market participants. I look forward to this historic legislation being considered in both the House Committees on Financial Services and Agriculture next week.”
US Is Falling Behind in Crypto Regulations
While the primary focus of the first bill is to provide regulatory clarity, the second legislation, supported by Republican Congressman Tom Emmer and Democratic Congressman Darren Soto, proposes guidelines to ease hurdles and requirements for blockchain developers and service providers, including miners, multi-signature service providers, and decentralized finance (DeFi) platforms. Emmer expressed his excitement on Twitter, hailing the bill’s approval as a significant victory for the United States, a step forward in crafting a future peer-to-peer digital economy.
BREAKING: My nonpartisan bill – the Blockchain Regulatory Certainty Act – just passed out of the @FinancialCmte.
This is a huge win for the United States as we are one step closer to putting Americans in the driver’s seat in crafting the future peer-to-peer digital economy. pic.twitter.com/JEOuflDMax
— Tom Emmer (@GOPMajorityWhip) July 26, 2023
The congressman further clarified the specific purpose of the second bill: to determine if certain blockchain-related entities should be classified as money transmitters in the United States. According to Emmer, if the bill gets approved in the House of Representatives, it will send a clear message to the crypto community that entities not dealing with customer funds will not be labeled as money transmitters.
During the meeting on Wednesday, Congressman Patrick McHenry, the Republican chair of the House Financial Services Committee, voiced concern that while countries like the UK, the European Union, Singapore, and Australia have implemented clear regulatory frameworks for digital assets, the United States faces the risk of falling behind. The approval of these bills aims to address that issue.
US Agriculture Committee to Vote on the Approved Crypto Bills
The passage of these proposed legislations marks a pivotal moment for the crypto industry as it seeks a clear and unified regulatory framework. The effort comes in response to the SEC’s steady assertion of its authority over the industry, classifying most cryptocurrencies as securities and subjecting them to investor protection rules. The bills aim to address concerns regarding jurisdiction and provide guidance to the crypto community, bolstering the US position in the rapidly evolving digital asset space.
Industry leaders expressed optimism that the bills will bring much-needed clarity while providing essential protections for consumers and investors. However, the road ahead may involve further negotiations and potential modifications as lawmakers seek to strike a balance between innovation and safeguarding the interests of US investors.
The House of Agriculture Committee is scheduled to vote on the approved bills later today. Following the vote, the rules will be moved to the full House of Representatives to vote, with all eyes on the Senate to gauge the industry’s regulatory trajectory.
Despite the progress, it’s worth noting that not all proposed legislation received unanimous support. The Digital Assets Market Structure bill faced resistance from both Democrats and Republicans. Democratic Representative Maxine Waters criticized the bill for allegedly heeding the calls of the crypto industry while disregarding regulatory guidance from the SEC. The legislation may face further obstacles in the Democratic-led Senate, where some members have expressed uncertainty about the need for additional legislation to regulate crypto.
US Congressional Committee Votes in Favor of Crypto Regulatory Bills
