On July 26, 2023, the United States House Financial Services Committee approved two crucial bills the Financial Innovation and Technology for the 21st Century Act and the Blockchain Regulatory Certainty Act, which aim to establish clear guidelines for crypto firms and address the jurisdictional differences between U.S. securities and commodities regulators.
The Financial Innovation and Technology for the 21st Century Act, which was approved in a 35-15 vote, seeks to create a framework for crypto firms to determine which regulatory body they should register with—the Commodity Futures Trading Commission (CFTC) or the Securities and Exchange Commission (SEC). This move is expected to provide much-needed clarity and streamline the compliance process for companies operating in the crypto space.
Moreover, the bill introduced by Republican Congressman French Hill includes a provision for companies to certify with the SEC that their projects are adequately decentralized. By doing so, these firms can categorize their digital assets as digital commodities under the purview of the CFTC, providing further clarity on the classification of various crypto assets.
Hailing the approval of the Financial Innovation and Technology for the 21st Century Act, Congressman French Hill expressed pride in crafting a landmark legislation that prioritizes consumer protections and establishes clear rules for market participants, while also fostering innovation within the United States.
Congressman Emmer, who championed the Blockchain Regulatory Certainty Act, stated that the bill specifically addresses which blockchain-related entities qualify as money transmitters in the United States. He highlighted that the legislation’s passage will clarify that entities not holding custody of customer funds are not considered money transmitters. This measure is expected to bring more certainty to the blockchain community and promote innovation in the industry.
Previously, the UK government passed the Financial Services and Markets Bill 2023 on June 28. This legislation enables the regulation of crypto assets and stablecoins, aiming to safeguard investors and attract companies from the US. Along with the UK countries like Singapore, and Australia have taken decisive steps to establish well-defined regulations for digital assets, now the United States has also taken a step toward crypto regulation.
With the passage of the Financial Innovation and Technology for the 21st Century Act and the Blockchain Regulatory Certainty Act, the United States moves closer to establishing a comprehensive regulatory framework for the rapidly evolving cryptocurrency landscape. These bills mark a significant step forward in striking a balance between fostering innovation and ensuring robust consumer protections within the cryptocurrency industry.