Crypto regulation framework moves forward but will it become law?
investmentnews.comLegislation championed by crypto advocates that sets clearer rules for the nascent industry was approved by a key US House panel on Wednesday.
The Republican-led bill was approved by the House Financial Services Committee in a 35-15 vote, mostly along party lines. A handful of Democrats, including Jim Himes of Connecticut and Ritchie Torres of New York, also voted in favor of the legislation and argued the status quo wasn’t working.
Chairman Patrick McHenry of North Carolina touted the legislation and the potential for crypto. “This is a software revolution and a financial revolution if done correctly,” he said.
Clearing that first step is a win for crypto advocates who have said existing rules aren’t clear and are seeking to stymie the US Securities and Exchange Commission, which has ramped up its enforcement against the industry following the collapse of high-profile companies, including FTX.
The House Agriculture Committee, led by Pennsylvania Republican Glenn Thompson, will consider its own portion of the bill Thursday, including $120 million in additional funding for the Commodity Futures Trading Commission, which would get new powers to oversee the asset class under the legislation.
Republicans warned that crypto companies will head overseas without a clear regulatory framework.
Even if the full House votes in favor of the bill, it faces long odds in the Democrat-led Senate, where Banking Chairman Sherrod Brown of Ohio has been a skeptic of the crypto industry.
The legislation would establish rules for when crypto firms must register with the SEC or the CFTC. It lays out a process for digital-asset issuers to certify to the SEC that a blockchain network is sufficiently decentralized, which would allow related
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