- House representatives approved two bills: the Financial Innovation Act and the regulatory definition of blockchain.
- The new bills will be key in developing a regulatory framework for cryptocurrencies.
- Republican Tom Emmer called the passage of the laws a “huge victory” for the United States.
The U.S. House Financial Services Committee voted on new cryptocurrency legislation on July 26th. This was reported by the publication Coindesk with reference to official documents. A majority of lawmakers voted in favor of two important pieces of legislation: the Financial Innovation and Technology for the 21st Century Act and the regulatory definition of blockchain technology.
The need for regulatory action arose last year after the collapse of FTX, Celsius and Voyager Digital. The new bills are expected to simplify the transition of digital assets from securities to commodities. And they will also help create a regulatory framework to govern stablecoins.
After the Fed raised the Fed Funds rate by 25 basis points on Wednesday, July 26, Democrats declined to support a market structure bill. They criticized one of the clauses giving more power to the Commodity Futures Trading Commission (CFTC). Lawmakers said the document could weaken legal protections for U.S. investors.
Republicans subsequently urged their colleagues not to delay passage of the legislation. And praised the regulatory clarity it could bring to the crypto industry.
“If Congress does nothing, the United States will miss a huge opportunity, many Americans will suffer. Passage of the legislation would be a huge victory for the country,” said Republican Tom Emmer.
After being approved in the July session, both bills headed to the full House of Representatives for a vote now. Earlier, CFTC Chairman Rostin Behnam said it could take 3-4 years to create new rules to regulate cryptocurrencies.