The United States crypto landscape has witnessed a remarkable development regarding the introduction of clear-cut regulation in the country. The development manifested after the preponderance of U.S. legislators voted in support of two bills. On July 26, 2023, the legislators voted in approval of the Financial Innovation and Technology for the 21st Century Act, likewise the Blockchain Regulatory Certainty Act.
Consequently, the House Financial Services Committee approved the two crypto regulation bills. The bills are aimed at providing regulatory clarity. As revealed, they are regulations intended at determining when crypto firms can register with the Commodity Futures Trading Commission or the Securities and Exchange Commission.
Furthermore, our findings indicated that both the Republican and Democratic parties sponsored the bill. Accordingly, the bill designs a procedure that crypto firms must follow to prove to the SEC that their products are decentralized. Thereafter, the certification from the SEC will support crypto firms to register virtual assets as digital commodities with the CFTC. Consequently, bringing an end to the confusion about which regulatory body between the SEC and the CFTC can exercise oversight function over the crypto space.
However, global efforts toward crypto regulation in 2023 are gradually bearing impressive returns. Recently, the UK government shunned recommendations on regulating cryptocurrency like gambling in the country. With that, crypto enthusiasts will have insights into what crypto regulations in the country will look like. Similarly, administrations in Namibia, Russia, and Hong Kong have all made substantial progress towards allowing the virtual assets sphere to strive under a healthy atmosphere.Â
Reaction to the crypto regulation bill
Meanwhile, the passage of the bill has generated positive reactions. Republican legislator, French Hill, the vice chairman of the House Financial Services Committee, reacted to the passage of the bill. Hill said he’s proud to witness how the bill scaled through the first stage. The Congressman revealed how the bill enjoyed bipartisan support. Consequently, leading to its smooth passage.
Further, French Hill referred to the bills as landmark legislation that establishes consumer protections. The lawmaker registered faith in the efficiency of the bill in providing clear regulations for investors. Lastly, the Congressman added that the regulation will encourage investors to remain in the United States crypto market.
Also, Republican Congressman, Tom Emmer who co-sponsored the Blockchain Regulatory Certainty Act alongside Democratic Congressman Darren Soto weighed his opinion on the development. He referred to the passage of the bill as a huge win for the U.S. More so, the Congressman describes how the bill through detailed regulation will define the roles of regulators and businesses in the U.S. crypto landscape.