A key committee in the U.S. House of Representatives has given the green light to a bill that aims to provide clearer rules for the cryptocurrency industry. The Republican-led bill got through the House Financial Services Committee with a 35-15 vote.
The bill will next be considered by the House Agriculture Committee, which will weigh allocating an additional $120 million and new powers to the Commodity Futures Trading Commission in a bid to help it oversee the crypto industry.
Republicans have warned that without clear rules, cryptocurrency companies might move their operations overseas. But even if the full House supports the bill, it might struggle to get approval in the Democrat-led Senate, where there is more skepticism about the crypto industry.
The proposed bill would create a clear framework for crypto regulation in the US. It would define when crypto firms need to register with the SEC or the CFTC, and how they can prove that their tokens are not securities, while requiring both agencies to work together and create studies on emerging topics like non-fungible tokens (NFTs) and decentralized finance (DeFi).
Moreover, the legislation incorporates specific terms that indicate a digital asset isn’t classified as a security solely due to its sale as part of an investment agreement, seemingly in alignment with a recent ruling by a federal judge on XRP not being a security.
There has been pushback against the bill, with SEC Chair Gary Gensler arguing existing laws are sufficient and that crypto firms are choosing not to follow them. Certain Democrats on the House Financial Services Committee have echoed this view, arguing that the bill could allow crypto to bypass existing securities laws.
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- Source: https://www.cryptocompare.com/email-updates/daily/2023/jul/27/
