US House Committee approves the bipartisan crypto bill, ensuring regulatory clarity for cryptocurrencies in the market.
House Financial Services Committee Approves Crypto Regulatory Framework Bill
In a landmark 35-15 vote, the House Financial Services Committee passed the Financial Innovation and Technology for the 21st Century Act. The bipartisan bill seeks to establish clearer rules for crypto firms by determining whether they should register with the Commodity Futures Trading Commission (CFTC) or the Securities and Exchange Commission (SEC).
The legislation also aims to define the classification of cryptocurrencies as either securities or commodities. Additionally, it proposes to expand the CFTC’s oversight over the crypto sector. The bill’s passage is seen as a pivotal moment in providing much-needed clarity to the industry while ensuring that the US remains at the forefront of crypto regulation.
Supporters of the bill, including some Democrats like Jim Himes and Ritchie Torres, believe that these regulatory measures will facilitate innovation and investment in the digital asset market while maintaining a balance to protect investors. However, not all legislators were in favor of the bill, with Representative Maxine Waters expressing concerns about its impact on investor protection and potential confusion.
Blockchain Regulatory Certainty Act Also Approved
In addition to the crypto regulatory framework bill, the House Financial Services Committee voted in favor of the Blockchain Regulatory Certainty Act. The bill was led by Republican Congressman Tom Emmer and Democratic Congressman Darren Soto. The legislation aims to provide clarity and certainty for “blockchain developers and service providers,” including miners and multi-signature service providers.
Proponents of the bill argue that it will promote the growth of the blockchain industry by offering legal certainty and reducing uncertainty for businesses operating in this space. The passage of this bill is seen as a significant win for the US, positioning it to lead in shaping the future of the peer-to-peer digital economy.
Senate Adds Anti-Money Laundering Provisions for Crypto Industry
While the House was advancing its crypto and blockchain bills, the Senate made its own moves to address concerns related to anti-money laundering (AML) in the cryptocurrency industry. Senators Cynthia Lummis, Kirsten Gillibrand, Elizabeth Warren, and Roger Marshall proposed an amendment to the National Defense Authorization Act.
The amendment requires regulatory agencies, including the Treasury Department and the Conference of State Bank Supervisors, to establish a risk-focused examination and review process for financial institutions dealing with cryptocurrencies. This process aims to assess specific risks related to crypto, such as whether existing AML programs are sufficient and whether institutions are compliant with the law.
Moreover, the Treasury Department will conduct an analysis of the role of mixers and privacy-enhancing technologies used in connection with crypto assets, providing recommendations for any additional legislation required to address potential concerns.
Final Thoughts
As the bills proceed through the legislative process, stakeholders in the crypto space will closely monitor the developments and their potential impact on the industry’s future growth and stability.