US House Financial Services Committee Chairman Patrick McHenry said new legislation that would give the cryptocurrency industry more clarity on regulatory oversight is set for a vote in the House of Representatives on Last May.
The proposed legislation – dubbed the Financial Innovation and Technology for the 21st Century (FIT21) Act – aims to provide clear regulatory frameworks for digital assets, addressing issues long-term market surveillance and consumer protection.
Patrick McHenry
Law is very necessary
McHenry said on May 10 that the review process would provide “the necessary floor time that the law deserves.” He added:
“For too long, the U.S. digital asset ecosystem has been hampered by regulatory uncertainty that has stifled innovation and left consumers unprotected.”
Crypto Council CEO Sheila Warren explained that the review will take place during the week of May 20.
The House Rules Committee, which includes nine Republicans and four Democrats, will likely review the legislation under a “structured rules” to determine what amendments can be considered as well as the debate time of each side.
The committee will determine whether FIT21 should proceed with a floor vote* at the end of May. The bill must also proceed through the Senate and the President.
Distinguishing powers between the SEC and CFTC
FIT21 grants CFTC jurisdiction over crypto commodities and assigns SEC jurisdiction over cryptocurrencies offered in investment contracts.
The act aims to establish “clear boundaries between the SEC and CFTC.” The SEC's continuously expanding enforcement efforts have been highly controversial in recent years, and as such, FIT21 could resolve one of the most heated controversies in cryptocurrency.
This distinction is intended to help cryptocurrency developers find the right way to raise funds and clarify whether their activities are subject to CFTC or SEC oversight.
In addition to separating the roles of regulators, the bill also creates a process to allow secondary market trading of tokens offered for the first time in an investment contract.
FIT21 also sets out the rules for companies that must register with the SEC and CFTC, including requirements around disclosure of information to customers, asset protection, and operations.
House Agriculture Committee Chairman Glenn Thompson, Whip Tom Emmer and Representatives French Hill, Dusty Johnson and Warren Davidson introduced the bill in July 2023.
The US House of Representatives is currently controlled by the Republican Party, which is said to support cryptocurrency and tend to be more innovative than President Joe Biden's Democratic Party.
*In the US House of Representatives, “floor voting” is the process by which members of the House of Representatives must conduct votes on the floor of the House of Representatives. When a bill or an important issue is brought up for discussion and voting, members will stand on the floor of the House of Representatives to participate in the voting process. This process is typically managed by the Speaker of the House or an appropriate leader. This allows members to directly express their views on the bill or issue being discussed.
Source: https://tapchibitcoin.io/ha-vien-my-se-bo-phieu-ve-du-luat-tien-dien-tu-fit21-de-cung-cap-ranh-gioi-ro-rang- between-sec-and-cftc-on-thang-5.html