Regulation
The US House will vote on two major cryptocurrency bills next week
There will be significant legislative activity next week as United States House of Representatives is preparing to vote on two key bills, HR 5403 and HR 4451. These bills are poised to have a substantial impact on the regulation of digital currencies and securities in the United States, potentially reshaping the financial landscape.
The House will vote on cryptocurrency regulation bills
The first of the bills, H.R. 5403, known as State CBDC anti-surveillance law, proposes strict limitations on the Federal Reserve’s involvement with digital currencies. Specifically, it would prevent the Federal Reserve from issuing central bank digital currencies (CBDCs) directly to private individuals and from the use of CBDCs to implement monetary policy. Furthermore, the law aims to prevent the Treasury Department from directing the issuance of a CBDC, with the aim of protecting citizens from potential financial surveillance and control.
This bill has broad implications as it strengthens the separation between government institutions and direct consumer financial products. By limiting these capabilities, the bill advocates a more privatized approach to digital currency, away from federal oversight and control.
At the same time, H.R. 4451, entitled the Securities Clarity Act, is intended to refine the definition of what constitutes a security. The bill clearly exempts investment contract assets, which are sold pursuant to an investment contract and are not inherently securities, from being treated as such for regulatory purposes. This classification directly impacts how cryptocurrencies are viewed and managed under federal law, potentially easing the regulatory burden on crypto companies.
Read also: Michael Saylor Shares Bullish Tip on Bitcoin (BTC) as Price Breaks Above $67,000
The clarity of this bill is expected to encourage innovation and investment in the crypto space by offering a clearer regulatory framework. It aims to remove significant uncertainties that currently cloud the classification and treatment of digital assets.
Bipartisan support for cryptocurrency regulation is growing
These legislative efforts follow the U.S. Senate’s recent decision to repeal Staff accounting bulletin 121 (SAB 121), which has garnered bipartisan support and indicates increasing legislative focus on digital currency and asset regulation. Furthermore, influential groups such as Crypto Council Innovation (CCI) and major companies like Coinbase and Gemini have expressed support for another related bill, the Financial Innovation and Technology for the 21st Century Act (IN SHAPE 21).
FIT 21 proposes a comprehensive regulatory framework for digital assets jointly managed by the Commodity Futures Trading Commission (CFTC) and the SEC. This law focuses on customer protection measures such as fund segregation, risk disclosure and conflict of interest regulations, improving the overall stability and transparency of the digital asset market.
Read also: XRPL on XPMarket startup starts token exchange after deployment failure