- A major House panel in the United States has voted in favor of two independent blockchain bills.
- The two bills voted by the House Financial Services Committee are not part of broader legislation but are thoroughly crypto bills.
- Some members of the Committee are concerned that the new bill grants more oversight and control to the Commodity Futures Trading Commission (CTFC) on crypto matters.
U.S. House Panel Approves Crypto Bills
The House Financial Services Committee has approved two crypto regulations that may clarify the United States’ position regarding crypto.
On Wednesday, several U.S. lawmakers voted to support the Financial Innovation and Technology of the 21st Century Act and Blockchain Regulatory Certainty Act.
The bill, the Financial Innovation, and Technology of the 21st Century Act, known as the H.R 4763, is a crypto-focused legislation aimed at providing clarity on whether crypto firms should register with the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CTFC).
The bill will also clarify what constitutes a security or commodity, thereby giving more control of crypto regulation to the Commodity Futures Trading Commission (CTFC).
In an opening speech, Rep Patrick McHenry, the Committee’s chairman, expressed his enthusiasm about the successful approval of the crypto-focused bills. He stated that the bill’s approval is an important step in preventing the United States from falling behind other jurisdictions in crypto regulation.
“Our comprehensive digital asset market structure legislation recognizes a key issue: digital assets that are not inherently securities may be offered as part of an investment contract, but that does not make them securities,” Rep McHenry said.
The Financial Innovation and Technology of the 21st Century Act was approved by a majority of 35-15 votes. The critics of the bills expressed their concerns about the legislation and the CFTC’s control over crypto regulation.
“I’ve been on this committee for 20 years, and I can say unequivocally that this is the worst piece of legislation that has been presented for markup in that 20 years,” Rep Stephen Lynch told the committee on Wednesday.
Coindesk reported that the U.S. Democrats are concerned about how the proposed legislation would empower the CTFC despite the Commission’s reputation for being soft on crypto companies.
The fact that corrupt crypto players like FTX founder, Sam Bankman-Fried, had previously lobbied for more regulatory authority to be granted to the CTFC fueled their concerns.
In response to the opposition, Republican lawmakers stated that the new legislation would pacify SEC’s brutal crackdown on the crypto industry in the U.S. This will encourage crypto firms to stay in the country rather than migrate to other crypto-friendly countries.
“If Congress does nothing, the United States will miss a huge opportunity, and Americans will suffer for it,” Rep. Tom Emmer (R-Minn.), the majority whip, said.
The House Financial Services Committee also approved the Blockchain Regulatory Certainty Act. The bipartisan bill is aimed at providing guidelines and requirements for blockchain developers and service providers.
The Digital Asset Market Structure Bill, another blockchain-centered bill, was not supported, unlike others.
“As I have said before, we don’t need to invent new regulatory structures simply because crypto companies refuse to follow the rules of the road. Our securities laws have protected investors and retirees for 90 years while supporting capital formation and facilitating innovation,” Democratic Representative, Maxine Waters, condemned the proposed bill.
