US Legislators Advance Crypto-Related Bills
A key panel from the United States House has moved ahead with two bills targeting the cryptocurrency industry, in a bid to set clearer rules for the emerging sector. The bills seek to establish boundaries for the jurisdiction of US securities and commodities regulators.
Lawmakers Support Crypto Regulatory Bills
On July 26, a significant number of US legislators voted to approve the Financial Innovation and Technology for the 21st Century Act and the Blockchain Regulatory Certainty Act. The House Financial Services Committee gave the green light to the Financial Innovation and Technology for the 21st Century Act with a vote count of 35-15. This Act will set guidelines for crypto firms regarding when to register with either the Commodity Futures Trading Commission or the Securities and Exchange Commission.
The Republican-proposed bill also details a process for firms to verify with the SEC that their projects possess sufficient decentralization, thereby gaining the ability to register digital assets as digital commodities with the CFTC.
First Success for New Crypto Regulations
French Hill, a Republican Congressman who also serves as the vice chairman of the House Financial Services Committee, expressed his pride in the bill's progress, emphasizing its bipartisan support within the committee. Furthermore, the bipartisan-backed Blockchain Regulatory Certainty Act, championed by Republican Tom Emmer and Democrat Darren Soto, sets out to establish a framework that eliminates complexities and requirements for blockchain developers and service providers, including minors, multisignature providers, and DeFi platforms.
Emmer hailed the advance of the Blockchain Regulatory Certainty Act as a resounding triumph for the United States. He further explained that the Act, if approved by the House of Representatives, would clarify which blockchain-related entities are classified as money transmitters in the United States. According to Emmer, entities that do not hold customer funds will be confirmed as not qualifying as money transmitters, thereby establishing a clearer environment for the blockchain industry.
Contentions Over a New Digital Asset Bill
Despite the advancement of these acts, both Republicans and Democrats declined to back another proposed legislation, notably The Digital Assets Market Structure bill. Democratic Representative Maxine Waters criticized the bill for too closely aligning with the demands of the crypto industry and turning a blind eye to guidelines from the SEC.
“Crypto firms should not avoid following rules due to new regulatory structures. Our securities laws have successfully protected investors and pensioners for 90 years while promoting capital formation and fostering innovation,” Waters argued.