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House Republicans have proposed a crypto regulation framework that would bring more clarity to the sector, which is currently under siege in the United States. Regulatory proposals have been coming thick and fast as America loses ground in the crypto and fintech industry due to its lack of consistency and clarity.
On July 20, US lawmakers submitted the Financial Innovation and Technology for the 21st Century Act. The latest proposal seeks cooperation between the two large federal regulators, the Commodity Futures Trading Commission and the Securities and Exchange Commission.
Another Crypto Regulation Bill Submitted
The bill was submitted by House Committee on Agriculture chairman Glenn Thompson and French Hill, chairman of the Subcommittee on Digital Assets.
Congressman Hill said that the framework would “protect consumers and keep innovation in the United States,” before adding:
“This legislation would not only have prevented FTX from stealing billions of customer funds but also establishes robust consumer protections and clear rules of the road for market participants.”
Moreover, the crypto regulation bill aims to clarify definitions and covers digital asset exemptions. It also clarifies how crypto companies can register with financial regulators, the CFTC and SEC.
Furthermore, the bill aims to amend the archaic US securities laws so that the SEC must consider “innovation” as a factor when taking action.
“Securities laws and regulations do not account for many of the unique characteristics of digital assets,” it stated.
Read more: The Full List of Cryptos Named Securities in SEC Lawsuits
It also provides clarity on the classification of “decentralization” for a blockchain network. This would help determine whether its tokens are considered securities or not.
Representative Dusty Johnson stated:
“The crypto industry wants clarity and our collaborative bill gives both the CFTC and SEC a seat at the table.”
Meanwhile, Chairman of the House Financial Services Committee, Patrick McHenry, added:
“Not only can digital assets revolutionize our financial system, but their underlying blockchain technology holds promise as the building blocks for the next generation of the internet,”
A Warm Reception
“If we want to be taken seriously as a nation, we have to act seriously as a nation.” These were the comments from Coinbase chief legal officer Paul Grewal who added:
“This legislation would finally put the US into the global conversation on digital asset regulation. Congress should enact this without delay.”
Earlier this month, Senators Cynthia Lummis and Kirsten Gillibrand revamped their “Responsible Financial Innovation Act.”
The bill proposes that the CFTC oversee crypto regulations rather than the SEC, which is “stifling innovation in financial technologies.”