A key United States House panel has approved a pair of bills that will be key to developing a regulatory framework for cryptocurrencies, reducing regulatory red tape for crypto, and setting clearer rules for the industry.
On July 26, the majority of U.S. lawmakers voted in favor of the Financial Innovation and Technology for the 21st Century Act as well as the Blockchain Regulatory Certainty Act.
The House Financial Services Committee approved the Financial Innovation and Technology for the 21st Century Act in a 35-15 vote which would establish rules for crypto firms on when to register with either the Commodity Futures Trading Commission (CFTC) or the Securities and Exchange Commission (SEC).
#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.
Up next: @HouseAgGOP considers the legislation tomorrow. pic.twitter.com/kOyLmolPuz
— Financial Services GOP (@FinancialCmte) July 26, 2023
The Republican bill also outlines a process for firms to certify with the SEC that their projects are adequately decentralized which would allow them to register digital assets as a digital commodity with the CFTC.
Republican Congressman, French Hill, who also serves as the Vice-Chairman of the House Financial Services Committee said he was proud the bill had passed its first hurdle, and that it had been passed by the committee with bipartisan support.
“We have crafted landmark legislation that establishes robust consumer protections and clear rules of the road for market participants while keeping innovation in the United States.”
Meanwhile, the bipartisan “Blockchain Regulatory Certainty Act” led by Republican Congressman Tom Emmer and Democratic Congressman Darren Soto, aims to set out guidelines that remove hurdles and requirements for “blockchain developers and service providers” such as miners, multi-signature service providers and decentralized finance (DeFi) platforms.
Republican Representative Tom Emmer praised the passing of the Blockchain Regulatory Certainty Act as a “huge win” for the United States.
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
Despite the passing of these acts, both Republicans and Democrats refused to support another proposed piece of legislation, dubbed the market structure bill. Both sides critiqued the bill for a specific section that would grant greater regulatory oversight to the Commodity Futures Trading Commission (CFTC).
Others, including Democratic Representative Maxine Waters have opposed the market structure bill in the past, saying it could mean fewer protections for crypto investors.
This is a developing story, and further information will be added as it becomes available.
Additional reporting by Jesse Coghlan.
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