A measure to provide guidelines for regulating the cryptocurrency markets has been launched by prominent Republican members of the US House of Representatives. The change comes in response to the recent XRP decision, which many experts viewed as moving the sector in the right direction.
With this law, the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC) will be made clearer as to when and how businesses should register. Additionally, it will shed light on items that were first marketed as prospective securities before becoming commodities. Whether the parent blockchain is sufficiently decentralized will determine whether an asset is a commodity or a security. In the US, the laws governing crypto markets are still hazy, but the legislation in place now anticipates addressing the problem.
Republican Reps. French Hill and Dusty Johnson, as well as Glenn Thompson, chairman of the House Agriculture Committee, are the bill’s main proponents. Patrick McHenry of North Carolina, the committee’s chair for financial services, also supported the legislation.
Will the measure result in a change for US crypto companies?
The proposal, according to Thompson, “marks a significant milestone in the House Committees on Agriculture and Financial Services’ efforts to establish a much-needed regulatory framework that protects consumers and investors.”
Thompson expressed his hope that the XRP decision will persuade more Democrats to back the initiative.
Since the June draught, the law has undergone a number of modifications. For instance, it changed a previous regulation governing provisional registrations with the SEC or CFTC. US crypto companies would be able to send the agency a notice of intent to register. Regarding registration or token listings, they won’t be the target of enforcement actions. They must, however, abide by the transparency and asset protection laws. The government will keep looking for companies that manipulate or lie.
Republicans are continuing working on the bill right now. It will need Democratic support in order to pass in Congress, especially in the Senate. Major legislators, like Maxine Waters, the leading Democrat on the Financial Services Committee, have expressed concern about the bill. The SEC has repeatedly stated that additional regulations are not necessary to define whether a cryptocurrency is subject to its jurisdiction. Many others, though, do not hold this opinion.
