Regulation
House of Representatives to vote on two landmark crypto bills next week
Next week there will be significant legislative activity as the United States House of Representatives is preparing to vote on two key bills, HR 5403 and HR 4451. These bills are poised to have a substantial impact on the regulation of digital currencies and securities in the United States, potentially reshaping the financial landscape .
House to vote on crypto regulation bills
The first of the bills, HR 5403, known as Anti-CBDC Surveillance State Law, proposes strict limits on the Federal Reserve’s involvement in digital currencies. Specifically, it would prevent the Federal Reserve from issuing central bank digital currencies (CBDCs) directly to individuals and using CBDCs to execute monetary policy. Additionally, the law aims to prevent the Treasury Department from directing the issuance of a CBDC, with the aim of protecting citizens from possible financial surveillance and control.
This bill has far-reaching implications because it reinforces the separation between government institutions and direct-to-consumer financial products. By limiting these capabilities, the bill advocates a more privatized approach to digital currency, away from federal oversight and control.
At the same time, HR 4451, entitled Securities Clarity Act, intends to refine the definition of what constitutes a security. The bill clearly exempts investment contract assets, which are sold under an investment contract and which are not inherently securities, from being treated as such for regulatory purposes. This classification directly affects how cryptocurrencies are considered and managed under federal law, potentially easing the regulatory burden on crypto companies.
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The clarity of this bill is expected to encourage innovation and investment in the crypto space by providing a clearer regulatory framework. It aims to address significant uncertainties that currently cloud the classification and treatment of digital assets.
Bipartisan support for crypto regulation increases
These legislative efforts follow the recent decision by the United States Senate to repeal Personnel accounting bulletin 121 (SAB 121), which has garnered bipartisan support and indicates a growing legislative focus on digital currency and asset regulation. Additionally, influential groups such as Crypto Consulting Innovation (CCI) and leading companies like Coinbase and Gemini have expressed support for another related bill, the Financial Innovation and Technology for the 21st Century Act (CUT 21).
FIT 21 provides a comprehensive regulatory framework for digital assets jointly managed by the Commodity Futures Trading Commission (CFTC) and the SEC. This law focuses on customer protection measures such as fund segregation, risk disclosure, and conflict of interest regulation, thereby improving the overall stability and transparency of the digital asset market.
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