Prominent Republican members of the US House of Representatives have unveiled a bill to provide a framework for governing crypto markets. The development follows the recent XRP ruling that many experts considered a positive direction for the industry.
The legislation will aim to clarify when and how firms should register with the SEC (Securities and Exchange Commission) or the CFTC ( Commodity Futures Trading Commission). Furthermore, it will also provide clarity to assets that were introduced as potential security and eventually turn into a commodity. Whether an asset is a commodity or a security will depend on if the parent blockchain is decentralized enough or not. The regulations around crypto markets are still unclear in the US, and the current legislation is looking forward to tackling the issue.
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The bill is spearheaded by House Agriculture Committee Chairman Glenn Thompson and Republican Reps. French Hill and Dusty Johnson. The legislation also received the backing of Financial Services Chair, Patrick McHenry of North Carolina.
Will the bill bring a change for crypto firms in the US?
According to Thompson, the legislation “marks a significant milestone in the House Committees on Agriculture and Financial Services’ efforts to establish a much-needed regulatory framework that protects consumers and investors.“
Thompson stated that he hoped the XRP ruling will convince more Democrats to support the effort.
The law has undergone a number of changes since the June draft. For instance, it modified a previous rule regarding SEC or CFTC provisional registrations. US crypto firms would be able to submit a notice of intent to register with the agency. They won’t be subjected to enforcement proceedings with regard to registration or token listings. However, they need to abide by the rules of protecting customer assets and disclosure. The authorities will continue to pursue firms for deceit or manipulation.
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The bill is still currently a Republican effort. To be passed in Congress, it will require Democratic support, particularly in the Senate. Major lawmakers have voiced their worries about the bill, including Maxine Waters, the senior Democrat on the Financial Services Committee. The SEC has asserted time and time again that new regulations are not required to specify when a token falls under its purview. However, many do not share this view.