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Financial authorities in the United States will also collaborate to develop modalities for clear-cut crypto legislation in the United States.
The United States House of Representatives passed H.R. 1602 — the Eliminate Barriers to Innovation Act — proposed by Congressman Patrick McHenry on Tuesday (R-NC).
H.R. 1602 was among six bipartisan financial services-related bills passed by Congress on Tuesday with the McHenry-sponsored legislation focusing on regulatory clarity for cryptocurrencies.
The bill, which was introduced in March, aims to clarify the positions of agencies such as the Securities and Exchange Commission and the Commodity Futures Trading Commission in the regulation of cryptocurrencies in the United States.
The bill also aims to resolve the current controversy about whether cryptocurrency tokens are shares or commodities.
Representative McHenry, speaking on the House floor during the bill’s passage, stated:
“[This bill] requires the Securities and Exchange Commission and the Commodity Futures Trading Commission to establish a working group focused on digital assets. This is the first step in opening up the dialogue between our regulators and market participants and move to needed clarity.”
Learn more: https://t.co/jYrqQbSxXf
Watch the Ranking Member’s remarks 📺👇 pic.twitter.com/BAAyEf91qy
— Financial Services GOP (@FinancialCmte) April 20, 2021
Following the bill’s passage, Congress now has 90 days to form the working group, which will include representatives from the SEC, the CFTC, and the private sector.
Participants from the private sector will include fintech and financial technology firms, as well as small and medium-sized businesses and academics.
The working group will have a year from the time it is established to release a study assessing the current crypto regulatory environment. The panel’s work would also provide considerations for crypto custody, cybersecurity, private key control, and investor safety.
The patchwork design of crypto legislation in the United States continues to irritate business stakeholders in the region. According to some business analysts, the United States is at risk of losing ground in the evolving global economy due to a lack of regulatory transparency for digital properties.
Earlier this month, Goldman Sachs CEO David Solomon expected a significant shift in cryptocurrency laws in the United States.