In a significant development for the U.S. cryptocurrency industry, the United States House Financial Services Committee has successfully passed two crypto regulatory bills. These bills, named the Financial Innovation and Technology for the 21st Century Act and the Blockchain Regulatory Certainty Act, were approved by a majority of U.S. lawmakers on July 26.
The Financial Innovation and Technology for the 21st Century Act, passing with a 35-15 vote, is set to establish clear rules for cryptocurrency firms regarding their registration requirements. It will provide guidance on when these firms should register either with the Commodity Futures Trading Commission (CFTC) or the Securities and Exchange Commission (SEC). This move is expected to lead to fewer questionable lawsuits and provide much-needed clarity for the industry.
Additionally, the Republican bill outlines a process for firms to obtain certification from the SEC, confirming the adequate decentralization of their projects. This certification would enable digital assets to be registered as digital commodities with the CFTC.
The second bill, the Blockchain Regulatory Certainty Act, has bipartisan sponsorship by Congressman Tom Emmer and Congressman Darren Soto. Its objective is to remove hurdles and requirements for various entities in the blockchain sector, including miners, service providers, and decentralized finance platforms.
Emmer hailed the passing of this bill as a “huge win” for the United States. He clarified that the Blockchain Regulatory Certainty Act addresses which blockchain-related entities would qualify as money transmitters in the country. If passed in the House of Representatives, the bill would affirm that blockchain entities not holding customer funds are not considered money transmitters, providing much-needed clarity for people involved in activities such as mining.
With the passage of these regulatory bills, the U.S. cryptocurrency industry is now on the path towards greater clarity and stability. The legislation aims to strike a balance between protecting consumers and encouraging innovation, fostering a conducive environment for crypto-related businesses in the United States.
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