U.S. Lawmakers Take Two Initiatives Toward Comprehensive Crypto Regulation Bill

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Aiming to clarify virtual currency regulations

US House of Representatives announced on April 27 that the Agriculture and Financial Services Commissions will work together to develop comprehensive regulations on crypto assets (virtual currencies). Separately, senators are also discussing a comprehensive regulatory proposal for cryptocurrencies.

First, statements from the House of Representatives include Financial Services Committee Chairman Patrick McHenry, Agriculture Committee Chairman Glenn Thompson, and Commodity Markets, Digital Assets and Rural Development Subcommittee Chairman Dusty Johnson. announcement. As they embark on a joint effort to enact clear rules for the cryptocurrency ecosystem, they said:

The right balance must be struck to protect consumers while not stifling responsible innovation.

We will hold public hearings in our subcommittee this week to identify regulatory shortcomings related to cryptocurrencies. Furthermore, in May, the Joint Subcommittee will hold a public hearing to consider ways to compensate for these shortcomings.

We are exploring solutions that can provide much-needed regulatory clarity and certainty while adhering to principles that protect market participants.

Cryptocurrency classification problem

Chairman McHenry made a supplementary explanation to this statement when he attended the cryptocurrency conference “Consensus 2023” on the 28th.

He said that he plans to do so in the next two months, in particular, the classification of cryptocurrencies. It is in the form of wanting to draft a bill for when cryptocurrencies are considered commodities instead of securities, or when they fit neither.

In addition, we will discuss how to raise funds for virtual currency. As for timing, he speculated that it could be introduced as a bill by the House of Representatives within the next 12 months.

In the U.S., the U.S. Securities and Exchange Commission (SEC) is currently trying to crack down on many virtual currencies as “securities,” but the U.S. Commodity Futures Trading Commission (CFTC) considers them to be “commodities.” There are differences of opinion between the two committees.

Moreover, the SEC has been criticized for arbitrarily resorting to legal action without providing clear guidelines. Under these circumstances, clear regulations are awaited.

connection: U.S. lawmakers call for removal of Gensler and reorganization of SEC

Progress of the Responsible Financial Innovation Act

In the United States, Senator Cynthia Lumis and others are bipartisanly promoting the Responsible Financial Innovation Act (RFIA) as a comprehensive regulatory proposal for cryptocurrencies.

Rep. Lumis said on Monday that the bill will be introduced in the Senate within the next six to eight weeks.

The bill includes a classification of cryptocurrencies, clarification of the role of regulators, increased oversight of stablecoins, and revisions to cryptocurrency taxation. Sections related to national security and tackling cybercrime are also expected to be added.

Lumis said he wanted to create a regulatory framework that would make sense to both innovating companies and regulators.

Some cryptocurrency skeptics worry that our bill does not adequately address cybercrime. Therefore, we will add more powerful content about dealing with cybercrime.

It will also include a provision requiring business registration so that companies are properly regulated and vetted.

connection: U.S. lawmaker plans to release revised version of comprehensive “virtual currency bill” in April

What is a stablecoin

A cryptocurrency whose price is always stable. Stablecoins are a type of cryptocurrency, and unlike volatile assets such as BTC, ETH, and XRP, the purpose is to maintain its value ($1) backed by the US dollar. In addition to US dollar-backed stablecoins (USDT/USDC), there are also stablecoins that use algorithms.

Cryptocurrency Glossary