The U.S. House Financial Services Committee is set to vote on new legislation regulating digital assets, including cryptocurrencies and stablecoins. The proposals are scheduled to be debated in the second week of July.
As the US regulatory agencies continue to grapple with regulatory uncertainty in the crypto industry, several Republican leaders have introduced bill drafts aimed at providing much-needed regulatory clarity.
The regulatory landscape for crypto assets in the US has been murky and confusing, with several agencies claiming jurisdiction over the space. This has led to a lack of clarity and certainty for investors and businesses, hindering the industry’s growth.
To address these issues, Republican leaders have introduced bill drafts to provide a regulatory framework for the crypto ecosystem.
Crypto Goes To Washington
The House Financial Services and Agriculture Committees have already released on June 2nd a discussion draft of legislation aimed at regulating digital assets and providing a statutory framework for digital asset regulation. The legislation is intended to provide clarity, fill regulatory gaps, and foster innovation while providing adequate consumer protections.
The proposed legislation is a joint effort between the House Financial Services and Agriculture Committees. It aims to close authority gaps between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). It also seeks to establish a viable regulatory framework for digital assets that will protect consumers and promote American innovation.
The legislation, drafted by Committee Chair Patrick McHenry and Rep. Glenn Thompson, aims to provide market structure-related provisions and lower reporting and regulatory requirements for digital assets that transition into commodities.
However, the bills will require support from Democrats in the Senate and President Joe Biden’s signature to become law.
In addition to the proposed legislation, the Committee will debate a separate bill that calls for a comprehensive regulatory framework for stablecoins, authored by McHenry and Rep. French Hill. The bills will be subject to changes and a final vote to report them favorably from the panel.
These bills aim to prevent the US from falling behind other countries in the digital asset race. The industry can innovate and grow by providing regulatory clarity, creating jobs and economic opportunities for Americans.
Overall, the proposed legislation from the House Financial Services and Agriculture Committees could provide a more comprehensive approach to regulating digital assets, offering investors and businesses greater clarity and stability in the market.
The committees encourage stakeholders and market participants to provide constructive feedback to help improve the legislation and ensure that America remains the leader in financial and technological innovation.
Featured image from Unsplash, chart from TradingView.com