US House Republicans Introduce Landmark Bill for Regulating Crypto: The Financial Innovation and Technology for the 21st Century Act
On Thursday, Senior House Republicans presented legislation to resolve the regulatory ambiguity surrounding the digital asset industry.
The proposed bill calls for mandatory definitions of "blockchain" and "digital asset" to be included within the existing financial laws by market regulators.
The "Financial Innovation and Technology for the 21st Century Act," a 212-page bill, aims to create a crucial regulatory framework for the digital asset sector.
It seeks to introduce new regulations for digital asset exchanges and provide clear guidelines for the roles of the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission in overseeing cryptocurrencies.
The comprehensive bill has garnered support from influential members, including Rep. Glenn Thompson (R-Pa.), Chair of the House Agriculture Committee. Rep. French Hill (R-Ark.) and Rep. Dusty Johnson (R-S.D.) are co-sponsors.
Notably, Hill chairs the Subcommittee on Digital Assets, Financial Technology, and Inclusion, while Johnson leads the Subcommittee on Commodity Markets, Digital Assets, and Rural Development.
Rep. Tom Emmer (R-Minn.) and Rep. Warren Davidson (R-Ohio), both active crypto advocates, joined as co-sponsors during this session.
The bill proposes a notable feature - a certification process for blockchains to be recognized as decentralized.
This would empower the SEC to challenge claims made by token issuers about meeting the outlined standards.
Under the new rules, digital asset issuers must adhere to a disclosure regime, sharing essential information about their project's economics, development plan, and risk factors.
The disclosure requirements include providing the project's source code.
The legislation provides clear guidelines
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