A draft bill discussion has been posted by members of the US House Financial Services Committee and House Agriculture Committee to provide legal clarity for the cryptocurrency business. The proposed law aims to limit the U.S. The SEC has previously approached cryptocurrency regulation and is now creating a practical framework for certain crypto assets. This framework categorizes them as digital commodities.
A draft bill, published on June 2, aims to prevent the SEC from denying digital asset trading platforms. It would allow them to register as regulated alternative trading systems. These platforms are also now able to offer “digital commodities and payment stablecoins.” Legislators aim to address the lack of clear regulatory norms in the crypto realm. It has been a bone of contention for many industry participants.
The proposed legislation’s emphasis on decentralization and usefulness is one of its main features. If they are both functioning and seen as decentralized, certain digital assets would be classified as digital commodities under the framework. To maintain openness, the SEC would need to conduct a comprehensive study of arguments against designating a corporation as decentralized. This would ensure a comprehensive evaluation process.
“The Act also requires the SEC to modify its rules to allow broker-dealers to custody digital assets, if they meet certain requirements,” said the draft. “Additionally, the Act would require the SEC to write rules to modernize certain regulations for digital assets.”
🚨NEW: Key House Republicans Unveil Crypto Market Structure Draft Bill
— Eleanor Terrett (@EleanorTerrett) June 2, 2023
Reactions and Political Landscape About Draft Bill
Paul Grewal, the chief legal officer at Coinbase, praised the draft legislation, saying that it lays a strong platform for regulatory jurisdiction and definitions. However, he emphasized the significance of undertaking a careful study before its official presentation. Before a lobbying event slated for July in Washington, D.C. Coinbase, a well-known cryptocurrency exchange with a U.S. base, recently started an advertising campaign aimed at encouraging crypto adoption.
Republicans Glenn Thompson and Patrick McHenry, chairs of the House Agriculture and Financial Services committees, presented the legislation. Notably, the measure did not take into account suggestions from lawmakers from the opposition party. Democrats and Republicans have shown bipartisan willingness for cryptocurrency regulation, but its progress in a divided Congress remains uncertain.
At the time of publication, the House and Senate had enacted legislation to raise the debt ceiling and prevent the country from defaulting. On June 2, President Joe Biden is expected to sign the bill into law, alleviating concerns about a potential default crisis.
Industry participants and observers will closely monitor the proposed bill’s impact on the regulatory environment. It holds significance as the crypto business rapidly develops.