Congressman French Hill (R-AR), chairman of the Subcommittee on Digital Assets, Financial Technology and Inclusion, said he and other committee leaders have introduced a bill aiming to provide regulatory clarity to crypto market participants, protect consumers, and encourage innovators to remain in the U.S. The bill includes paths for industry participants to register with the Commodity Futures Trading Commission (CFTC) and the U.S. Securities and Exchange Commission (SEC) and directs both agencies to work with foreign regulators to develop international standards.
“After listening to members on both sides of the aisle, the Biden Administration, and stakeholders, the House Committees on Financial Services and Agriculture are introducing landmark legislation today to establish a functional regulatory framework that will protect consumers and keep innovation in the United States,” said Rep. French Hill, according to a July 20 press release. “This legislation would not only have prevented FTX from stealing billions of customer funds, but also establishes robust consumer protections and clear rules of the road for market participants. I look forward to this historic legislation being considered in both the House Committees on Financial Services and Agriculture next week.”
According to the press release, along with Hill, Rep. Glenn "GT" Thompson (R-PA), chairman of the House Committee on Agriculture, and Rep. Dusty Johnson (R-SD), chairman of the Subcommittee on Commodity Markets, Digital Assets, and Rural Development, introduced the Financial Innovation and Technology for the 21st Century Act on July 20. Congressmen Tom Emmer (R-MN) and Warren Davidson (R-OH) were also cosponsors of the bill.
The bill outlines a path for digital commodity brokers, dealers, and exchanges to register with the CFTC and for digital asset brokers, dealers, and exchanges to register with the SEC, according to a summary of the legislation. The bill specifies that digital commodities and certain stablecoins are not securities and therefore will not be subject to securities laws. The legislation also includes disclosure requirements for digital assets, including on risks related to an asset's source code, development plan, and affiliated people.
Thompson called the introduction of the Financial Innovation and Technology for the 21st Century Act a "significant milestone" in the committees' work "to establish a much-needed regulatory framework that protects consumers and investors and fosters American leadership in the digital asset space," according to the press release.
Johnson said in a statement that he believes the bill will provide the regulatory clarity that industry participants have been asking for. “The digital asset space is muddled with regulatory uncertainty, lack of authority, and a lacking framework for core operating principles,” Johnson said, according to the press release. “The crypto industry wants clarity and our collaborative bill gives both the CFTC and SEC a seat at the table. Our bill establishes clear principles to ensure financial security and certainty as digital asset developers continue to innovate.”
