Republican members of the United States House have introduced a new bill aimed at establishing a regulatory framework for digital assets. Called the Financial Innovation and Technology for the 21st Century Act, the bill tackles regulatory gaps and addresses the unique risks associated with various digital asset-related activities.
Under this bill, the Commodity Futures Trading Commission (CFTC) would be given jurisdiction over digital commodities, while the jurisdiction of the Securities and Exchange Commission (SEC) would be clarified. In order for a digital asset to be considered a commodity, it must meet certain conditions, with decentralization being the primary requirement.
One significant aspect of the bill is that digital asset commodities could be sold on SEC-registered digital asset trading systems. Market participants would also be subject to new and more comprehensive disclosure requirements. This would help bolster transparency and protect investors in the rapidly growing digital asset market.
Furthermore, the bill emphasizes the need for regulatory consistency on a global scale. It calls for the agencies to collaborate with foreign regulators to establish consistent regulatory standards for digital assets. Additionally, the bill includes a provision for a study on nonfungible tokens (NFTs), which have gained significant popularity and attention in recent years.
The cosponsors of the bill have expressed their dissatisfaction with the SEC’s current regulation of the crypto industry. They argue that the existing regulatory regime is ill-suited for digital assets and calls for a more tailored approach to ensure effective oversight.
To develop the bill, two House committees collaborated closely and held joint meetings to discuss its contents. This demonstrates a bipartisan effort in creating the regulatory framework needed for the digital asset industry.
It is worth noting that this bill will face competition from another bipartisan bill introduced by Senators Cynthia Lummis and Kirsten Gillibrand. Both bills aim to address the regulatory challenges associated with digital assets, highlighting the growing importance of this issue in Congress.
With the introduction of the Financial Innovation and Technology for the 21st Century Act, Republican members of the United States House are taking steps to establish a comprehensive regulatory framework for digital assets. Their efforts align with the need to address the unique risks and challenges posed by this emerging market and ensure investor protection and global regulatory consistency. With support from the House committees, this bill sets the stage for further discussions and potential legislative action in the future.
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