US lawmakers unveil bill to regulate the crypto market

US Republicans in the House of Representatives published a bill regulating the digital-asset industry, which would require the SEC and CFTC to draft the relevant rules.

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The 200-page document is titled “21st Century Financial Innovation and Technology Act”. It would require regulators to define the terms “blockchain” and “digital asset”.

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Moreover, the agencies would be barred from setting rules about how individuals may own cryptocurrencies.

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Under the proposal, blockchain projects would be temporarily exempt from traditional securities registration. Issuers of digital assets would be able to offer tokens up to $75 million over a 12-month period, but with restrictions on sales to unaccredited investors.

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Issuers would still have to file information with the SEC, including annual and semi-annual reports. The rule would remain in effect until regulators certify the project as decentralized and move its token into the commodity category.

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Companies would not be able to sell more than 10% of the asset’s total supply to a single buyer. The bill also includes a provision banning the commingling of client and corporate funds.

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“This is a pivotal moment for the United States as a global leader in innovation and technology adoption. Digital assets could revolutionize our financial system, and the blockchain technology underpinning them promises to underpin the next generation of the Internet,” said House Speaker Patrick McHenry.

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Lawmakers will vote on the bill as early as next week.

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In July, senators proposed a bill that would require DeFi protocols to comply with AML rules.

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In June, Treasury Secretary Janet Yellen urged Congress to move quickly to pass a cryptocurrency bill.

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Earlier, Moody’s analysts said that without a bipartisan approach to regulation of cryptocurrencies, the United States will become “less attractive for both firms and investors”.