FSC Chairman Proposes Regulatory Framework for Crypto and Stablecoins

The United States House Financial Services Committee's Chairman, Representative Patrick McHenry, has unveiled the forthcoming legislation that seeks to bring transparency to the digital asset sector.

The committee has scheduled a meeting on July 26th to advance the discussion on digital asset regulations. Three main acts will be highlighted during this discussion: the Blockchain Regulatory Certainty Act (H.R. 1747), the Financial Innovation and Technology for the 21st Century Act (H.R. 4763), and the Clarity for Payment Stablecoins Act of 2023 (H.R. 4766). 

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The rationale behind H.R. 4763, as outlined in a memorandum released on July 21st, is to develop a digital asset market structure suited to the distinctive properties of digital assets. Meanwhile, H.R. 1747 aims to ease the regulatory burden on blockchain developers, absolving them from the need to acquire licenses provided they aren't involved in cryptocurrency transactions.

The proposal H.R. 4766 focuses on providing clear directives regarding stablecoin issuance.

The announcement of the review date for these critical acts came on the heels of the introduction of the Financial Innovation and Technology for the 21st Century Act. Aiding in its conception, the Subcommittee on Digital Assets' Chairman, the US Representative French Hill, emphasized that establishing a functional regulatory framework is pivotal in safeguarding investors against financial scams.

This legislation would not only have prevented FTX from stealing billions of customer funds, but also establishes robust consumer protections and clear rules of the road for market participants.

Simultaneously, the US Department of Justice (DoJ) has decided to increase the staffing of its cryptocurrency crime division.

It is clear that with this upcoming legislation, the US is taking significant steps towards bringing much-needed clarity and regulatory standards to the rapidly evolving digital asset sector.