New bill aimed at setting clearer regulations for ever-growing cryptocurrency industry has gained approval from US House Financial Services Committee
The chairman, Patrick McHenry from North Carolina, expressed the transformative potential of the legislation, labeling it as a financial revolution. This nod of approval is crucial for crypto advocates, who have long contended that the existing regulatory landscape is ambiguous and inhibits the industry's growth.
Notably, the bill also attempts to harmonize with the recent federal ruling in the SEC's case against Ripple Labs Inc., suggesting that a digital asset does not automatically qualify as a security if sold as part of an investment contract.
Despite its success in the House Financial Services Committee, the bill's future remains uncertain, facing potential roadblocks in the Democrat-led Senate. Critics of the legislation, including SEC Chair Gary Gensler and several House Financial Services Committee Democrats, argue that existing securities laws sufficiently cover cryptocurrencies, and the firms are simply noncompliant.