Two regulatory bills have successfully passed the United States House Financial Services Committee, promising much-needed regulatory clarity. The bills aim to address the jurisdictional differences between the US securities and commodities regulators, providing a clear framework for crypto firms.
Financial Innovation and Technology for the 21st Century Act
The House Financial Services Committee, with a majority vote in favor (35-15), has given its approval to the Financial Innovation and Technology for the 21st Century Act. This legislation is designed to establish definitive rules for crypto firms regarding registration requirements with either the Commodity Futures Trading Commission or the Securities and Exchange Commission.
Furthermore, the bill, introduced by Republican Congressman French Hill, outlines a process for firms to gain certification from the SEC, confirming the adequate decentralization of their projects. This certification will enable these firms to register their digital assets as digital commodities with the CFTC.
Congressman Hill expressed pride in the bill’s passage. He further emphasized that it garnered bipartisan support, marking a crucial step forward for the industry.
Blockchain Regulatory Certainty Act
Another notable development is the approval of the bipartisan Blockchain Regulatory Certainty Act. This was co-sponsored by Republican Congressman Tom Emmer and Democratic Congressman Darren Soto. The act is intended to provide guidelines that remove obstacles and requirements for various blockchain entities. These include miners, multisignature service providers, and decentralized finance platforms.
Congressman Emmer hailed the passing of the Blockchain Regulatory Certainty Act as a “huge win” for the United States. He clarified that the act specifically addresses the classification of blockchain-related entities as money transmitters. Once passed in the House of Representatives, the bill will affirm that entities not involved in customer fund custody are not considered money transmitters.
This move is expected to bring greater clarity and certainty to the blockchain community.
The Digital Assets Market Structure Bill
However, not all proposed legislation received unanimous support. The Digital Assets Market Structure bill faced resistance from both Republicans and Democrats. Democratic Representative Maxine Waters expressed strong disapproval of the bill. She criticized it for giving too much heed to the demands of the crypto industry and disregarding regulatory guidance from the SEC.
Waters argued that the existing securities laws have proven effective in safeguarding investors and retirees for decades. All these while also fostering capital formation and promoting innovation. She maintained that inventing new regulatory structures to accommodate crypto companies unwilling to comply with established rules is unnecessary.