US lawmakers take a major step toward crypto and blockchain industry regulation.
A pivotal stride has been made in the US cryptocurrency legal landscape as a key US House Committee gives a thumbs up to two crypto-focused bills.
This approval brings hopes of definitive regulatory guidelines for cryptocurrency companies and specifies the jurisdictional boundaries between US securities and commodities regulators.
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The majority of the US legislators on July 26th showed support for the Blockchain Regulatory Certainty Act and the Financial Innovation and Technology for the 21st Century Act.
Following a 35-15 vote, the Financial Innovation and Technology for the 21st Century Act saw the green light from the House Financial Services Committee.
The Act provides a procedural framework for firms to demonstrate to the SEC that their operations are sufficiently decentralized, enabling them to register their digital assets with the CFTC as digital commodities.
The Vice-Chairman of the House Financial Services Committee, French Hill, lauded the bipartisan support the bill received in the committee. He stated:
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.
On the other hand, the Blockchain Regulatory Certainty Act, proposed by Congressman Tom Emmer and Darren Soto, promises a smoother operation for "blockchain developers and service providers," removing hurdles and unnecessary requirements for them.
Emmer praised the passing of the Blockchain Regulatory Certainty Act, calling it a "huge win" for the United States.
According to Emmer, the Act provides guidance on which blockchain-related entities qualify as money transmitters within the US. If approved by the House of Representatives, it would reassure the blockchain community that entities not holding customer funds are not classified as money transmitters.
However, the Digital Assets Market Structure bill was met with resistance and failed to gain unanimous support from both parties.
The US House Committee's approval of these crypto-focused bills signifies a turning point in the American crypto regulatory environment. Despite some dissent, the legislation marks a growing acceptance of the need for clear regulatory frameworks for the burgeoning crypto sector.
