US House Republican committees introduce joint digital assets bill

A bill to create a regulatory framework for digital assets has been introduced by Republican members of the United States House Committees on Agriculture and Financial Services, the result of several months of joint effort by the two committees.

212 pages Bill – called the Financial Innovation and Technology for the 21st Century Act – was introduced on 20 July. as provided with lecturerIt aims to address regulatory gaps by creating a framework for “specific risks of various digital asset-related activities”.

The bill gives the Commodity Futures Trading Commission (CFTC) jurisdiction over digital commodities, clarifies the jurisdiction of the Securities and Exchange Commission (SEC) and defines securities originally understood to be digital assets sold as commodities. creates a process for

The bill also sets out the conditions for a digital asset to be considered a commodity, with decentralization being a key requirement. Digital asset commodities can be sold on SEC-registered digital asset trading systems. Market participants are subject to new and more comprehensive disclosure requirements and may register with both agencies.

Introducing Financial Innovation and Technology for the 21st Century Act. The bill establishes a regulatory framework for digital assets, protects consumers, fosters innovation, and establishes America as a leader in finance and technology. #crypto https://t.co/0ihzY3MP0k

— House Committee on Agriculture (@HouseAgGOP) 20 July 2023

The agencies will also need to work with foreign regulators to create harmonized regulatory standards. The Government Accountability Office will need to complete a study on non-fungible tokens (NFTs) and how they fit into traditional markets.

Representatives French Hill and Dusty Johnson, who are among the bill’s cosponsors, sent a letter to SEC Chairman Gary Gensler the day before the bill was introduced, criticizing the agency’s so-called “regulation by enforcement” of the crypto industry. .

Related: Crypto and Securities: New Interpretation of the US Howe Trial Is Gaining Ground

The SEC policy was also highlighted in the bill’s introductory material. one of the documents where did it go,

“The SEC’s current regulatory regime is not designed to accommodate the registration and regulation of digital assets. The SEC has failed to provide the clarity these entities need to operate.”

The bill’s other cosponsors were Glenn Thompson, Tom Emmer, and Warren Davidson. The two House committees began working together on the digital assets bill earlier this year and have held more than one joint meeting to prepare for it.

Last week, Senators Cynthia Loomis and Kirsten Gillibrand introduced a new version of their bipartisan Responsible Financial Innovation Act (RFIA), with which the bill would compete.

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