Two bills have been approved by a significant panel in the United States House, potentially bringing much-needed regulatory clarity to cryptocurrency companies.
These bills aim to define the jurisdictional boundaries between U.S. securities and commodities regulators concerning the crypto industry.
On July 26, the majority of U.S. lawmakers voted in favor of two important acts: the Financial Innovation and Technology for the 21st Century Act, and the Blockchain Regulatory Certainty Act.
The House Financial Services Committee, in a 35-15 vote, gave its approval to the Financial Innovation and Technology for the 21st Century Act.
This act will establish clear guidelines for cryptocurrency firms, specifying when they should register either with the Commodity Futures Trading Commission or the Securities and Exchange Commission. Furthermore, the Republican bill proposes a procedure for firms to obtain certification from the SEC, affirming that their projects are suitably decentralized. This certification will enable these firms to register their digital assets as digital commodities with the CFTC.
Republican Congressman French Hill, also serving as the vice chairman of the House Financial Services Committee, expressed his pride in the bill passing its initial hurdle. He highlighted the bipartisan support it received during approval by the committee.
“We have successfully developed groundbreaking legislation that establishes strong safeguards for consumers and provides clear regulations for participants in the market, all while fostering innovation within the United States.”
Simultaneously, the bipartisan Blockchain Regulatory Certainty Act, sponsored by Republican Congressman Tom Emmer and Democratic Congressman Darren Soto, seeks to create guidelines that remove obstacles and obligations for “blockchain developers and service providers,” including miners, multisignature service providers, and decentralized finance platforms.
Emmer expressed great satisfaction with the passing of the Blockchain Regulatory Certainty Act, considering it a significant victory for the United States. He explained that the Act specifically addresses the classification of blockchain-related entities as money transmitters in the country.
Once the bill is approved in the House of Representatives, it will provide clarity to the blockchain community by affirming that entities not holding customer funds do not fall under the category of money transmitters.
Despite the successful approval of these acts, some Republicans and Democrats declined to support another proposed legislation known as The Digital Assets Market Structure bill.
Democratic Representative Maxine Waters criticized the bill for excessively accommodating the demands of the crypto industry and disregarding regulatory guidance from the SEC.
“As I have mentioned before, there is no need to create new regulatory frameworks simply because crypto companies are unwilling to comply with existing regulations. Our securities laws have effectively protected investors and retirees for 90 years, supporting capital formation and encouraging innovation,” Waters stated.