U.S. House committee approves crypto-market regulation bill

On 26 July, the U.S. House Committee on Financial Services approved the ’21st Century Financial Innovation and Technology Act’, which contemplates establishing a regulatory framework for the digital-asset industry.

The proposed a week earlier document obliges the SEC and CFTC to develop the relevant rules for the crypto market.

According to the press release, the bill provides clarity on which digital assets are regulated by each agency, to ‘allow innovators to confidently create and develop new products, and to provide essential protections for consumers’.

“Our comprehensive legislation on the structure of the crypto market recognises the key issue: digital assets that are not securities in their essence may be offered as part of an investment contract, but that does not make them securities,” said Patrick McHenry.

The measure passed by a 35-15 vote.

In addition, the committee approved the ‘Blockchain Regulation Act’. It provides that such ecosystems and related companies that do not control users’ funds are not financial institutions.

The documents have been referred to all House committees for consideration. They must then obtain Senate approval.

In June, U.S. Treasury Secretary Janet Yellen urged Congress to pass crypto legislation swiftly.

Moody’s said that without a bipartisan approach to regulating digital assets, the United States would become less attractive for both firms and investors.