The vote by the House Financial Services Committee is an important step in the history of the crypto industry. The First of Its Kind The House Financial Services Committee recently made a significant move by voting in favor of advancing crypto-specific bills, a first of its kind ...
The vote by the House Financial Services Committee is an important step in the history of the crypto industry.
The First of Its Kind
The House Financial Services Committee recently made a significant move by voting in favor of advancing crypto-specific bills, a first of its kind decision that focuses on creating a unified legal framework for cryptocurrencies and addressing blockchain-related issues. The bills in question are H.R. 4763, the Financial Innovation and Technology for the 21st Century Act, and H.R. 1747, the Blockchain Regulatory Certainty Act. While the decision marks a milestone for the industry, there were contrasting opinions among committee members.
BREAKING 🚨 #BITCOIN🇺🇸 US House Financial Services Committee passes bill to establish regulatory framework for crypto pic.twitter.com/B5IfbbVptd— BITCOINLFG® (@bitcoinlfgo) July 27, 2023
The Committee’s Decision and Concerns
During the markup session, committee members, including both Republicans and Democrats, engaged in discussions about the proposed market structure bill. One notable point of contention was the allocation of additional power to the Commodity Futures Trading Commission (CFTC). Some lawmakers expressed concerns that this move could weaken consumer protections offered by existing securities laws and potentially expose investors to fraud.
Chairman’s Support for the Legislation
Despite the disagreements, Rep. Patrick McHenry, the committee’s chair, commended the legislation in his opening remarks. He emphasized the necessity of enacting legislation to prevent the United States from lagging behind other countries in regulating cryptocurrencies. He further highlighted the importance of distinguishing between digital assets that are inherently securities and those that are not, addressing a key issue in the industry.
Critics’ Concerns and Democrats’ Opposition
However, some critics were not satisfied with the bill’s provisions. One lawmaker claimed it was the worst legislation presented for markup in the past two decades. Democrats expressed particular concern about the increased authority granted to the CFTC without providing the agency with additional funding. They feared this approach might enable future fraud in the crypto industry.
Republicans’ Support and Potential Industry Benefits
On the other hand, Republicans supporting the bill argued that an approved $120 million in funding by the Agriculture Committee would equip the CFTC with the necessary resources to regulate the digital assets space more effectively. They praised the legislation’s potential to provide clarity to the crypto industry, which could mitigate the SEC’s perceived severe crackdown on digital assets and encourage companies to remain in the United States.
🚨 BREAKING: HUGE WIN for the US #Crypto community 🚀🇺🇸 Two crucial crypto bills pass the House Financial Services Committee 🔥
A thread 🧵 pic.twitter.com/b3oXOY1Pmw— Keyur Rohit (@CryptoKingKeyur) July 27, 2023
Further Legislative Steps
While the House Financial Services Committee has advanced the mentioned bills, the House Agriculture Committee will begin its own markup on the Financial Innovation and Technology for the 21st Century Act, and the Financial Services Committee will focus on stablecoin legislation.
Senate’s Concerns and Anti-Money Laundering Provisions
Simultaneously, the Senate added anti-money laundering provisions for the crypto industry to the National Defense Authorization Act. The amendment requires various regulatory bodies, including the Treasury Department and Conference of State Bank Supervisors, to conduct a risk-focused examination and review process for financial institutions dealing with cryptocurrencies. The amendment also calls for a report analyzing the role of mixers and privacy-enhancing technologies used in connection with crypto assets.
Conclusion
The recent developments in Congress signal a step towards creating a regulatory framework for cryptocurrencies and blockchain technology. However, some lawmakers remain divided on certain aspects, and further discussions and negotiations are expected in the Senate. The industry, along with policy advocates, looks forward to gaining much-needed regulatory clarity to foster innovation and growth while protecting consumers and investors.