- The new bills give crypto firms regulatory clarity, including on differences in jurisdiction
- They outline a process for companies to certify adequate decentralization of their projects
- The regulations remove obstacles for DeFi platforms, miners, multi-sig providers
A very important US House panel approved two bills in what has been the biggest victory for crypto in some time. The new legislation will give crypto firms some regulatory clarity, including on the differences in jurisdiction between the US commodities and securities regulators, leading media reported.
Majority voted in favor of the bills
A majority of US legislators voted in favor of the Blockchain Regulatory Certainty Act and the Financial Innovation and Technology for the 21st Century Act on Wednesday, July 26.
The second bill was approved by the House Financial Services Committee in a 35-15 vote. It establishes rules for crypto companies on whether to register with the US Securities and Exchange Commission (SEC) or the US Commodity Futures Trading Commission (CFTC).
The bill, which was proposed by the Republican Party, also outlines a process for companies to certify adequate decentralization of their projects before the SEC. This would allow them to register crypto as a digital commodity with the CFTC.
Removing hurdles for DeFi, miners
The Blockchain Regulatory Certainty Act is a bipartisan bill, led by Republican Congressman Tom Emmer and Democratic Congressman Darren Soto. It provides regulations that remove obstacles and requirements for DeFi platforms, miners, multi-sig service providers, and other blockchain developers and service providers.
Emmer defined the approval of the Blockchain Regulatory Certainty Act as a huge victory for the whole country, clarifying that it specifically defines which blockchain-based firms qualify as money transfer providers in the US.
If the House of Representatives passes the bill, it will bring clarity by confirming to the blockchain community that if you don’t have customer funds in your custody, you don’t qualify as a money transfer provider, according to Emmer.
Third crypto bill not supported
The Digital Assets Market Structure, another proposed bill, was rejected by several Republicans and Democrats. Maxine Waters of the Democratic Party said the bill ignored the SEC’s guidance and favoring the crypto industry excessively.
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