A significant development has taken place in the crypto industry as the United States House Financial Services Committee has approved two pivotal regulatory bills. These bills provide much-needed clarity and guidelines for crypto firms operating within the country.
The House Financial Services Committee has approved the Financial Innovation and Technology for the 21st Century Act. The act aims to regulate crypto firms, mandating explicit registration with CFTC or SEC, ensuring compliance with set regulations. The vote, which resulted in a 35-15 outcome, signifies a significant step forward in shaping the future of cryptocurrency governance.
#PASSED: In a historic first, the House Financial Services Committee just advanced the BIPARTISAN FIT for the 21st Century Act to protect consumers and provide clear rules of the road for the digital asset ecosystem.
— Financial Services GOP (@FinancialCmte) July 26, 2023
One of the critical aspects of the Republican-backed bill is its provision allowing companies to obtain certification from the SEC. The certification proves decentralized projects. This lets firms register digital assets with CFTC, classifying them as commodities.
This strategic move is anticipated to simplify regulatory compliance procedures while fostering innovation within the United States. Republican Congressman French Hill, who serves as the Vice-Chairman of the House Financial Services Committee, expressed his pride in the successful passage of the bill.
He emphasized that the legislation incorporates comprehensive consumer protections while fostering a conducive environment for participants and innovators within the crypto space.
Blockchain Regulatory Certainty Act Advances, Digital Assets Bill Faces Opposition
The bipartisan “Blockchain Regulatory Certainty Act,” a groundbreaking bill, gained prominence. Republican Congressman Tom Emmer and Democratic Congressman Darren Soto championed its cause. The legislation removes blockchain barriers for developers, miners, and DeFi platforms by easing obligations and empowering service providers.
Emmer deemed the passing of the Blockchain Regulatory Certainty Act as a significant victory for the United States. This crucial legislation defines which blockchain-related entities meet the criteria for being considered money transmitters within the nation.
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
It clarifies entities not safeguarding customer funds aren’t money transmitters, a significant understanding for regulatory purposes. The blockchain community expects this clarity to boost confidence and foster innovation in this dynamic industry.
Amidst the jubilation surrounding the approval of two cryptocurrency bills, there arose substantial opposition to a significant piece of legislation. Aptly named “The Digital Assets Market Structure Bill,” it struggled to secure adequate support, encountering resistance from both Democrats and Republicans.
Democratic Representative Maxine Waters opposed the bill, expressing concerns about its perceived favorable treatment of the crypto industry. She also criticized its disregard for regulatory guidance from the SEC. She argued that existing securities laws safeguard investors, and retirees, promote capital formation, and spur innovation for decades.
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Representative Waters argued against the necessity of creating new regulatory frameworks solely due to a few crypto companies refusing to comply with existing regulations. She highlighted the success of securities laws safeguarding investors and retirees for 90 years, promoting capital formation, and fostering innovation.