The House Agriculture and Financial Services Committees have proposed a new 212-page bill aimed at establishing a comprehensive regulatory framework for digital assets.
Called the Financial Innovation and Technology for the 21st Century Act, the bill is meant to address gaps in the current regulation of cryptocurrencies and provide clarity for the industry.
Under the proposed bill, the Commodity Futures Trading Commission (CFTC) would have jurisdiction over digital commodities while the Securities and Exchange Commission (SEC) would oversee securities.
A digital asset could be considered a commodity under certain conditions, mainly decentralization. Such commodities could then be traded on SEC-registered exchanges.
The bill would also require market participants to comply with new disclosure mandates and potentially register with both the CFTC and SEC.
Government agencies would be tasked with collaborating on consistent international standards around digital assets. The Government Accountability Office would study non-fungible tokens (NFTs) and how they fit into traditional marketplaces.
The bill’s sponsors – Representatives French Hill, Dusty Johnson, Tom Emmer, Glenn Thompson and Warren Davidson – said the SEC has failed to provide needed clarity for the crypto industry.
One document introducing the bill stated: “The SEC’s existing regulatory regime is not designed to accommodate the registration and regulation of digital assets. The SEC has failed to provide the clarity these entities need to operate.”
The new bill aims to position the U.S. as a leader in financial technology and innovation while protecting consumers. It will compete with the Responsible Financial Innovation Act introduced last week by Senators Cynthia Lummis and Kirsten Gillibrand.
If passed, the bill could help establish some much-needed regulatory framework around cryptocurrencies. But it still faces an uphill battle in a Democrat-controlled Congress.(Source: Cointelegraph)