The Financial Innovation and Technology for the 21st Century Art receives yet another approval.
The US House Agriculture Committee approved the "Financial Innovation and Technology for the 21st Century Act" on July 27th.
The forward-thinking legislation, aiming to provide a robust regulatory framework for digital assets, is a testament to the significant strides in cryptocurrency acceptance and adoption in the US political landscape.
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An impressive bipartisan effort underpinned the committee's swift navigation through the bill amendments, which were primarily authored by Republican members from both the Agriculture Committee and the Financial Services Committee.
On July 26th, the Act was favorably deliberated in the Financial Services Committee along with numerous other bills.
However, not all committee members were completely satisfied with the bill's current form. Democrat ranking member, David Scott, voiced the party's concerns, emphasizing the need to enhance consumer protections within the Act.
It does not provide for third-party auditing.
His concern for additional funding for the Commodity Futures Trading Commission (CFTC) to match its expanded authorities under the bill was also noted.
Furthermore, Representative Alma Adams voiced her apprehension, asserting that the Act could lead to "investor confusion." Unfortunately, her proposed amendment to ensure board diversity among market participants was not approved.
After extensive deliberations, the committee approved an amendment from Representative Yadira Caraveo. This amendment necessitates provisionally registered entities to join a futures trade association, providing an extra layer of oversight while new regulations are on the way.
The proposed legislation has won significant support within the crypto community. In a statement, Crypto Council for Innovation CEO Sheila Warren commended the committee's approval of the bill, saying:
It's a significant marker that shows keeping the status quo is not an option. There is too much at risk for consumers, US competitiveness, and national security to take a back seat.
Warren also added her suggestions for refining the Act, stating:
The definition of ‘digital asset trading system’ should be narrowed and the new exclusion category to the definition of ‘digital asset’ included in Section 101 and the restrictions on mixed digital asset transactions further clarified.
The "Financial Innovation and Technology for the 21st Century Act" marks a significant milestone in cryptocurrency legislation. Although the bill still needs refinement, its progress suggests a bright future for digital asset integration into the US financial system.
