Leading Republicans in the House of Representatives have formally introduced their latest version of the bill to establish a legislative structure for markets for digital assets, something the industry has been fighting for years.
The successor to the previous session’s economic innovation and technology to the 21st century law (Fit21), the new bill called Digital Asset Market Clarity Act is being pushed by top -Republicans in House Financial Services and the House’s Agricultural Committee. StableCOin legislation is still the front runner, the first major piece of American crypto law, but Thursday’s introduction pushes the ball forward on the most important and complex of the two accompanying efforts.
“America should be the global leader in the digital assets market, but we cannot do so without establishing a clear legislative framework,” said Representative Dusty Johnson, the South Dakota Republican, who leads the Agricultural Under Committee, which focuses on digital assets, in a statement of the bill’s introduction.
The Violent 236-page Law Act is probably a starting point for long negotiations between the parties in parliament and finally their Senate colleagues-provides Commodity Futures Trading Commission “Exclusive Regulatory Jurisdiction in relation to Crypto activity according to the current thoughts that the current thoughts of the current thoughts arise on or with new CFTC-calculated units.
The legislation would create a regime where Crypto platforms would have options for registration at CFTC and Securities and Exchange Commission, depending on whether they trade with digital assets ingredients like Bitcoin
securities or both. Those who apply for registration at CFTC as a digital commodity exchange can broker or dealer get preliminary registrations while the Agency is working on rules.
The Bill also requires that crypto platforms be regulated as financial companies under the Bank Secret Act; exempts certain decentralized financing operations (defi) and wallet providers from SEC supervision; Connects the future efforts of the supervisory authorities to force custody companies to keep their customers’ assets on their own balance as the SEC staff tried to do during a now scrapped accounting position; And put some transaction authorities over Payment StableCoins – which are clearly stated not to be securities – in the hands of the regulator that is already overseeing the company involved in the activity.
In addition, the Law of the Clarity was divided into so-called “qualified digital asset managers”-time a controversial point, as SEC tried to only give a narrow range of regulated custody to deal with the activities of investment advisers’ clients. The new bill sets the standard for such a custodian as a “appropriate supervision and appropriate regulation of certain federal, state or foreign authorities” – a bar that CFTC is called to define.
Defi is being kicked down the road, with the bill requiring SEC, CFTC and Treasury Department survey, which Arena for digital assets and comes back with a report on a year on how to move on. The Government’s Responsibility Office will also be asked to write a report on defi and non-funny symbols (NFTs).
The supervisory authorities involved would have one year to put into force of the Clarity Act if the law was passed. It is a tight time frame for complex financial regulation, which can often take more than a year – or even several years – for the agency’s staff to write rules and seek public input. Despite similar timelines in the Dodd-Frank Act of 2010, for example, there are still a few provisions that have not yet been completed.
The Senate will return to a floor debate next week about its stablecoin bill, which has already cleared several procedural obstacles with Bipartisan support, despite high democratic concerns about President Donald Trump’s personal business associates to the crypto sector that his government seeks to regulate. But it is unclear whether this legislation will join forces with the version of StableCOin supervision that the house eventually votes on, leaving uncertainty about exactly how the crypto reimbursement will continue in this session.
There is still some discussion about whether stablecoin and market structural calculations should be combined as a single crypto push in Congress. Trump has called on both to land on his desk at the August Congressional Break, though many cryptoinsers in Washington see that as a very ambitious goal.
The relevant house committees are set to hold digital assets hearings next week that give members a chance to publicly discuss the details of the legislation.
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