A United States House panel on Wednesday gave its approval to two bills aiming to bring regulatory clarity to crypto firms.
These bills address key issues like jurisdictional differences between securities and commodities regulators and provide guidelines for blockchain developers and service providers.
The first bill, known as the Financial Innovation and Technology for the 21st Century Act, was approved by a majority of U.S. lawmakers on July 26.
“In a historic first, the House Financial Services Committee just advanced the BIPARTISAN FIT for the 21st Century Act to protect consumers and provide clear rules of the road for the digital asset ecosystem,” said the Financial Services GOP in a Twitter statement.
It establishes a framework for crypto firms to determine whether they should register with the Commodity Futures Trading Commission (CFTC) or the Securities and Exchange Commission (SEC).
The second bill, called the Blockchain Regulatory Certainty Act, was sponsored by Republican Congressman Tom Emmer and Democratic Congressman Darren Soto.
The second bill prohibits the blockchain provider or developer of a blockchain service to be treated as a money transmitter, financial institution, or any state or federal legal designation.
Emmer praised the passage of the Blockchain Regulatory Certainty Act as a “huge win” for the United States. He explained that the bill “specifically deals with what blockchain-related entities qualify as money transmitters” in the United States.
“My nonpartisan bill – the Blockchain Regulatory Certainty Act – just passed out of the @FinancialCmte,” said Emmer in a statement regarding blockchain. “This is a huge win for the United States as we are one step closer to putting Americans in the driver’s seat in crafting the future peer-to-peer digital economy.”
He added, “if you don’t custody customer funds, you are not a money transmitter.”
Sam Bankman-Fried previously called for consumer protection for cryptocurrency customers prior to the collapse of FTX when he defrauded customers.
Coinbase CEO Brian Armstrong endorsed the Blockchain Regulatory Certainty Act and the Financial Innovation and Technology for the 21 Century Act ensure the protection of the consumer assets.
“Today, two House committees started voting to take an important step on legislation that will create regulatory clarity for crypto. They will continue tomorrow,” said Armstrong in his endorsement of the bills passed in Congress on Twitter. “The bill will evolve during the legislative process, but a vote today for the Financial Innovation and Technology for the 21 Century Act is a vote to protect your crypto, American innovation, and national security. Click below to email your Reps today to urge them to vote “yes” this week on FIT21.”
Produced in association with Benzinga