US House Republicans Unveil Crypto Market Bill
Prominent Republican members of the US House of Representatives have made a significant move by unveiling a new bill aimed at establishing a comprehensive framework to govern crypto markets. The introduction of this legislation comes in the wake of the recent XRP ruling, which experts view as a positive direction for the crypto industry.
JUST IN: 🇺🇸 US House Republicans introduce bill to establish regulatory framework for #crypto.
— Watcher.Guru (@WatcherGuru) July 20, 2023
Crypto Market Registration
The primary objective of the bill is to provide clarity on the registration process for firms dealing with cryptocurrencies. It seeks to outline the specific conditions under which companies should register with either the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC). Additionally, the bill aims to address the classification of assets that were initially considered potential securities but eventually transitioned into commodities. The determination of an asset’s status as a commodity or a security will depend on the level of decentralization exhibited by its parent blockchain.
Currently, the regulations surrounding crypto markets in the US remain ambiguous, making the introduction of this legislation a crucial step in addressing the issue. The bill is spearheaded by House Agriculture Committee Chairman Glenn Thompson, along with Republican Reps. French Hill and Dusty Johnson. It has garnered support from Financial Services Chair Patrick McHenry of North Carolina. Chairman Thompson expressed his belief that the legislation represents a significant milestone in establishing a much-needed regulatory framework that protects consumers and investors. He also expressed hope that the recent XRP ruling would persuade more Democrats to support the effort.
SEC and CFTC Changes
Since its initial draft in June, the bill has undergone several revisions. Notably, it has modified a previous rule regarding SEC or CFTC provisional registrations. Under the updated version, US crypto firms will have the option to submit a notice of intent to register with the respective agency. While they will not face enforcement proceedings for registration or token listings, they will still need to adhere to rules ensuring the protection of customer assets and disclosure. The authorities will continue to hold firms accountable for any fraudulent practices or market manipulation.
As it stands, the bill remains a Republican-driven initiative. To pass in Congress, it will require bipartisan support, particularly in the Senate. Some major lawmakers, including Maxine Waters, the senior Democrat on the Financial Services Committee, have expressed concerns about the proposed legislation. The SEC has reiterated that new regulations are unnecessary to specify when a token falls under its purview, but this view is not shared by all.
