The post U.S. House Introduces Updated Crypto Oversight Bill, Reflecting Changes Made Since June Draft appeared first on Coinpedia Fintech News In an exciting move, U.S. House Republicans introduced a new bill yesterday aimed at regulating the crypto sector and protecting investo...
The post U.S. House Introduces Updated Crypto Oversight Bill, Reflecting Changes Made Since June Draft appeared first on Coinpedia Fintech News
In an exciting move, U.S. House Republicans introduced a new bill yesterday aimed at regulating the crypto sector and protecting investors. The “Financial Innovation and Technology for the 21st Century Act” is a big step towards establishing a much-needed framework for digital assets.
New Bill Aims to Safeguard Investors
So why is this bill important? Well, with the growing popularity of cryptocurrencies and digital assets, there’s been a lot of confusion and uncertainty around how to regulate them. Notably, this lack of clarity has caused some established crypto businesses to think about leaving the U.S. and has made it difficult for startups to form in the country.
Interestingly, the new bill wants to change all that! It proposes a clear regulatory path for crypto exchanges to register with the U.S. Securities and Exchange Commission (SEC). This means that these exchanges would be able to trade digital securities, commodities, and stablecoins, all in one place. It’s a win-win for both investors and the crypto industry, as it brings much-needed clarity and security to the table.
Will it Impact DeFi Market?
So here you can fairly imagine that the revised bill, as compared to the earlier draft, excludes certain traditional securities from the “digital asset” category. This has raised some concerns in the DeFi (Decentralized Finance) market. DeFi platforms, like Compound and Liquid Collective, might face stricter regulations under this new provision, even if they aren’t currently subject to such scrutiny.
While responding to the recent bill debate, Gabriel Shapiro, general counsel of Delphi Labs, pointed out this crucial change on Twitter, warning that this could reintroduce ambiguity and potential issues with the Securities and Exchange Commission. It means that some DeFi assets, known as cTokens or Liquid Staking Tokens, might be subject to more stringent regulation than before.
“The SEC can still go on the warpath…all they have to do is argue that a token is a “transferable share” “a profit interest” etc.”
In a nutshell, the bill is a significant step forward in bringing regulation to the crypto world, protecting investors, and fostering innovation. But there’s still lingering concern about how certain DeFi assets might be affected by these new rules.
The debate is on, and all eyes are on the U.S. House as they continue their efforts to strike the right balance between regulation and innovation in the exciting world of cryptocurrencies!