Pro-crypto bill’ passes US House Agriculture Committee.
Pro-crypto bill' passes US House Agriculture Committee.
The Financial Innovation and Technology for the 21st Century Act: A Comprehensive View
The United States House of Representatives Agricultural Committee recently held discussions on the Financial Innovation and Technology for the 21st Century Act. This act, co-written by Republican members of the Agriculture and Financial Services Committee, aims to establish a comprehensive regulatory framework for digital assets. The committee’s deliberations were characterized by an emphasis on bipartisanship and cooperation, despite underlying concerns and divergent viewpoints.
One of the primary concerns raised by Democratic members, led by ranking member David Scott, was the need to strengthen consumer protections within the bill. Scott pointed out that the lack of provision for third-party auditing could leave consumers vulnerable. Additionally, there were reservations about the funding allocated to the Commodity Futures Trading Commission (CFTC), considering the expanded authorities conferred upon it by the bill.
While initial disagreements were evident, the committee made progress in addressing these concerns. Discussions revolved around the introduction of amendments to ensure oversight and accountability. For instance, an amendment proposed by Rep. Yadira Caraveo required provisionally registered parties to belong to a futures trade association, providing some interim oversight as regulations continued to be developed. This amendment aimed to strike a balance between allowing market participants to operate and ensuring accountability.
Rep. Alma Adams raised the issue of diversity on market participant boards, proposing an amendment to guarantee diversity. However, this amendment was ultimately voted down by the committee. Additionally, Rep. Jasmine Crockett introduced an amendment that mandated market participants to have physical addresses, enhancing transparency and making it easier for regulatory bodies to monitor their activities. Disclosure requirements were also strengthened as part of these discussions.
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Importantly, the committee chair, Rep. Glenn Thompson, and ranking member agreed on the need for further study of decentralized finance (DeFi). This recognition highlights the growing significance of DeFi and the committee’s commitment to understanding its implications within the broader regulatory framework. Ultimately, the bill successfully passed out of the committee with bipartisan support.
The crypto community has been notably supportive of the bill. Sheila Warren, CEO of the Crypto Council for Innovation, commended the committee’s passage of the bill, stating that it demonstrates a departure from maintaining the status quo and recognizes the risks at hand for consumers, US competitiveness, and national security. While appreciative of the progress, Warren also emphasized the need for further refinement of key definitions and clarity regarding restrictions on mixed digital asset transactions.
The Financial Innovation and Technology for the 21st Century Act represents a crucial step in establishing a regulatory framework for the digital asset industry. Its passage through the committee illustrates the collaborative efforts being made to address concerns and find common ground. As the bill continues its journey through the legislative process, it is expected to undergo further refinement based on feedback and considerations from various stakeholders.
Key Points: Financial Innovation and Technology for the 21st Century Act
To summarize the main points discussed above, here is a list of key takeaways regarding the Financial Innovation and Technology for the 21st Century Act:
- The bill aims to create a comprehensive regulatory framework for digital assets.
- Democratic members expressed concerns about the need for strengthened consumer protections and funding for regulatory bodies.
- Amendments were introduced to address these concerns, focusing on oversight and accountability.
- The bill received bipartisan support and successfully passed out of the committee.
- Further study of decentralized finance (DeFi) was agreed upon, acknowledging its importance.
- The crypto community has shown support for the bill while suggesting areas for further refinement.
The Financial Innovation and Technology for the 21st Century Act represents a significant milestone in the ongoing efforts to regulate the blockchain industry. It serves as a reminder that the status quo is no longer tenable, given the risks involved for consumers, US competitiveness, and national security. The bill’s passage in the committee demonstrates progress in addressing concerns and finding common ground, with further refinement expected in subsequent stages.
It is crucial for stakeholders within the blockchain industry to closely monitor developments surrounding this legislation and actively participate in shaping its final form. By engaging with lawmakers and providing valuable insights into the technical and operational aspects of blockchain technology, industry professionals can contribute to the creation of a balanced and effective regulatory framework that fosters innovation while protecting consumers and promoting broader economic growth.
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