US Congress to potentially vote on new legislation for crypto industry by end of May

House Financial Services Committee Chairman Patrick McHenry said caller authorities that volition springiness the crypto manufacture greater clarity regarding regulatory oversight is acceptable for a imaginable House level ballot by the extremity of May.

The projected authorities — dubbed the Financial Innovation and Technology for the 21st Century (FIT21) Act — aims to supply wide regulatory frameworks for integer assets, addressing longstanding issues of marketplace oversight and user protection.

Much-needed legislation

McHenry said connected May 10 that the information process volition springiness the “much-needed authorities the level clip it deserves.”

He added:

“For acold excessively long, the U.S. integer plus ecosystem has been plagued by regulatory uncertainty that has stifled innovation and near consumers unprotected.”

Crypto Council CEO Sheila Warren explained that information volition hap during the week of May 20.

The House Committee connected Rules, which is composed of 9 Republicans and 4 Democrats, volition apt see the authorities nether a “structured rule” that determines which amendments tin beryllium considered arsenic good the magnitude of clip acceptable for statement connected each side.

The committee volition find whether FIT21 should spell to a level ballot by the extremity of May. The measure indispensable besides proceed done the Senate and the President.

SEC-CFTC distinction

FIT21 gives the CFTC jurisdiction implicit crypto commodities and assigns the SEC jurisdiction over crypto offered wrong concern contracts.

The authorities explicitly aims to found “clear lines betwixt the SEC and CFTC.” The SEC’s continuously expanding enforcement efforts person go highly arguable successful caller years, and arsenic such, FIT21 could code 1 of crypto’s astir high-profile controversies.

The favoritism is intended to assistance crypto developers with a mode to rise funds and clarity connected whether their activities are taxable to CFTC oregon SEC oversight.

In summation to separating regulators’ roles, the measure besides creates a process to licence the secondary marketplace trading of crypto commodities archetypal offered successful an concern contract.

FIT21 besides sets rules for companies that indispensable registry with the SEC and CFTC, including requirements astir lawsuit disclosure, plus safeguarding, and operations.

House Committee connected Agriculture Chairman Glenn Thompson, Whip Tom Emmer, and Representatives French Hill, Dusty Johnson, and Warren Davidson introduced the measure successful July 2023.

The station US Congress to perchance ballot connected caller authorities for crypto manufacture by extremity of May appeared archetypal connected CryptoSlate.