Regulation
Three Ways McHenry’s Proposal on Cryptocurrency Markets Will Change the Industry – DL News
- The House is expected to vote on the FIT bill later this week.
- It would be the first time that an autonomous law on cryptocurrencies has been voted on.
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Republican Congressman Patrick McHenry’s historic cryptocurrency bill FIT law21will go to the Chamber for a vote.
This is a big deal because it’s the first time a standalone cryptocurrency bill has been heard by the full House.
According to McHenry, the FIT21 law is poised to bring much-needed clarity to the cryptocurrency industry.
However, not everyone is convinced. Democratic Rep. Maxine Waters called it’s a “wish list of big cryptocurrencies and doesn’t deserve our support.”
With the Securities and Exchange Commission on a fly-swatting mission, aiming to ConsensSys, CoinbaseAND Robinhood’s crypto firms for alleged securities violations: McHenry’s bill couldn’t have come at a better time.
Three takeaways for FIT
Here are the three key points.
First, the law will clarify who should regulate cryptocurrencies and how. If a network can demonstrate that it is sufficiently decentralized, for example, it will be under the purview of the Commodity Futures Trading Commission.
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Otherwise, the matter would be turned over to SEC Chairman Gensler. According to FIT21, this would not be a bad thing because crypto companies would finally be able to launch and trade coins legally.
This leads to the second key point.
If passed, FIT21 would create a clear registration process for crypto firms to work with the SEC – something the industry believes is currently too burdensome.
Dan Gallagher, Robinhood’s head of legal, compliance and corporate affairs, said his team spent years trying to register with the SEC. The commission appears to be moving forward with enforcement action against Robinhood’s cryptocurrency business.
Finally, the third fundamental point: cryptocurrency investors will also benefit from FIT21.
The act would require crypto firms to provide ownership and structure information and require exchanges to keep company and customer funds separate, a clear nod to the chaos the crisis has caused. collapse of FTX.
Basically, some transparency for anyone wanting to do business with a cryptocurrency company.
What are the odds?
But how likely is it to pass?
It has a strong chance of leaving the House, thanks to the Republicans’ general pro-crypto position and the majority in the lower house.
However, the Senate, with Democrat Elizabeth Warren leading the anti-cryptocurrency charge, will pose a bigger obstacle.
Yet cracks are showing in Warren’s coalition: Check out the 32 Democrats who crossed party lines to overturn regulatory guidelines this makes owning cryptocurrencies an expensive and cumbersome undertaking for banks.
Liam Kelly is a DeFi correspondent at DL News. Do you have advice? Email to liam@dlnews.com.