- Crypto regulatory bills passed the U.S. congressional committee.
- The legislation will provide clarity on the SEC’s jurisdiction over crypto.
- Lawmakers want to catch up with other countries in terms of crypto regulation.
On Wednesday, July 26, 2023, The House Financial Services Committee voted on a set of crypto bills that could finally provide regulatory clarity to the domestic industry.
Representative Patrick McHenry led 35 committee members to vote a resounding yes against 15 members in favor of the Financial Innovation and Technology (FIT) for the 21st Century Act and the Blockchain Regulatory Certainty Act.
Clarity for Crypto
The Bipartisan FIT for the 21st Century Act seeks to establish clear guidelines for how crypto firms should register in the US in a fully compliant manner. The bill clarifies the definition of digital assets in the realm of securities or commodities, discerning if registering with the Commodity Futures Trading Commission (CFTC) or the Securities and Exchange Commission (SEC) suffices regulatory compliance.
On the other hand, the nonpartisan Blockchain Regulatory Certainty Act aims to promote the domestic blockchain development ecosystem by removing hurdles that hinder innovation among digital assets miners, DeFi platforms, and multi-signature service providers.
The U.S. crypto industry has found itself firmly within regulatory crosshairs in 2023 after the sudden collapses of key players like FTX and Celsius Network. Binance, Coinbase, and Kraken have become a target for regulators.
The Fear of Missing the Regulation Train
"As other jurisdictions like the UK, the [European Union], Singapore, and Australia have moved forward with clear regulatory frameworks for digital assets, the United States is at risk of falling behind. We intend to change that today," said Representative Patrick McHenry in his speech.
Learn more about crypto regulation in the UK’s scrutiny of Worldcoin:
Explore how a Singapore High Court recognized crypto as property: