US House Financial Services Committee passes bill for clear crypto regulation

A vital US House meeting has passed a bipartisan bill that might finally ensure the sought-after regulatory clarity for cryptocurrency businesses.

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.

#PASSED: In a historic first, the House Financial Services Committee just advanced the BIPARTISAN FIT for the 21st Century Act to protect consumers and provide clear rules of the road for the digital asset ecosystem.

Up next: @HouseAgGOP considers the legislation tomorrow. pic.twitter.com/kOyLmolPuz

— Financial Services GOP (@FinancialCmte) July 26, 2023

On Wednesday, 26 July, most United States watchdogs voted to advance two cryptocurrency regulation bills, approving the 21st Century Act to safeguard customers and ensure decisive rules for the digital asset sector.

The lawmakers favored the Blockchain Regulatory Certainty Act and the Financial Innovation & Technology for the 21st Century.

Favoring the bills would ensure clear rules for cryptocurrency firms when registering with the Securities & Exchange Commission and the Commodity Futures Trading Commission.

Multiple Democrats, including Ritchie Torres, joined the bill voting. Moreover, the House Agriculture Committee will consider the updated framework on Thursday (27 July).

Win for the US crypto market

Copy link to section

While nations like the EU, Australia, and Singapore adopt clear market rules, the United States eyes an inclusive regulatory model for digital currencies to stay at par.

Meanwhile, the one-of-a-kind vote by the House of Representatives represents a massive win for crypto activists that have persuaded lawmakers to provide clear crypto regulations. It is the first time Congress decided on regulatory bills for the crypto market.

Securities clarity

Copy link to section

The SEC has showcased its dominance over the crypto space, stating that most cryptocurrency firms sell digital assets as securities and are thus subject to customer protection rules.

The regulator amplified its effort by suing Coinbase and Binance for failure to register some cryptocurrencies. The leading cryptocurrency exchanges have denied these allegations.

The securities watchdog faced massive criticism following the lawsuits, with the community pushing Congress to provide laws clarifying crypto as a commodity or security.

The cryptocurrency sector has seen increased regulatory scrutiny since last year’s sudden debacle of leading digital asset companies, including FTX, Voyager Digital, and Celsius Network.

Regulatory advisor Frank Gilligan explained how crypto firms could comply with SEC laws during an interview with invezz.com