On July 26, a significant congressional committee is gearing up for a crucial vote on multiple bills aimed at establishing a regulatory structure for cryptocurrencies. This milestone represents Capitol Hill’s effort to provide federal oversight for the digital asset industry.
The crypto sector has come under scrutiny following investors’ losses last year due to abrupt collapses of companies like Celsius Network, Voyager Digital, and FTX.
Among the legislation scheduled for consideration by the House Financial Services Committee are bills that aim to define whether a cryptocurrency is classified as a security or a commodity, as well as others focusing on the oversight of stablecoins – digital tokens typically backed by traditional assets such as the U.S. dollar.
The upcoming markups will be the first time crypto regulatory bills are put to a vote in Congress. This development is seen as a victory for crypto lobbyists, who have been urging lawmakers to bring clarity to the industry’s regulatory landscape.
Representative Patrick McHenry, the Republican chair of the committee, has prioritized advancing a crypto market structure bill. This bill aims to expand the Commodity Futures Trading Commission’s (CFTC) oversight of the crypto industry while clarifying the Securities and Exchange Commission’s (SEC) jurisdiction. Crypto advocates often criticize the perceived overreach of the SEC.
One of the primary issues the bills aim to address is the lack of clarity regarding the classification of cryptocurrencies. The SEC has viewed most cryptocurrencies as securities subject to investor protection rules. However, many crypto companies dispute the SEC’s jurisdiction, and they have urged Congress to create laws clarifying that cryptocurrencies should be treated more like commodities.
The bill to be considered on Thursday will require the Federal Reserve to set requirements for issuing stablecoins while preserving the authority of state regulators.
Despite the challenges and differing views, the upcoming votes mark a critical step towards bringing clarity and regulation to the rapidly evolving world of cryptocurrencies.
Update on the article can be obtained at reuters.com
