Forbes India 15th Anniversary Special

US Congressional Committee Passes Crypto Regulatory Bill

Crypto achieves a major milestone as the US congressional committee approves bipartisan bill for crypto regulation, signalling industry's progress

Shashank Bhardwaj
Published: Jul 27, 2023 04:44:22 PM IST
Updated: Jul 27, 2023 04:45:33 PM IST

US Congressional Committee Passes Crypto Regulatory BillImage: Shutterstock

In a landmark development, the US congressional committee has passed a bipartisan bill to create a regulatory framework for cryptos, marking a significant step forward for the crypto industry. 

The bill aims to clarify whether cryptos should be considered securities or commodities, and it seeks to expand the Commodity Futures Trading Commission's (CFTC) oversight while addressing concerns about the Securities and Exchange Commission's (SEC) perceived overreach.

The House Financial Services Committee approved the bill with the support of some Democrats- including representatives Jim Himes and Ritchie Torres, who joined committee Republicans in voting for the measure- demonstrating potential bipartisan backing. The House Agriculture Committee is also scheduled to consider the bill.

Representative Patrick McHenry, the Republican chair of the House Financial Services Committee, stressed the urgency of establishing clear regulatory frameworks for digital assets to avoid falling behind other countries that have already made progress in this area.

This is the first time a crypto regulatory bill has been put to a vote in Congress, representing a significant achievement for crypto advocates who have long sought regulatory clarity. However, the bill faces opposition from some Democrats, including Representative Maxine Waters, who believes it may lead to confusion and provide fewer protections for consumers and investors than current regulations.

The bill's fate in the Democratic-led Senate remains uncertain, as the head of the Senate Banking Committee, Sherrod Brown, has expressed reservations about the need for additional legislation to regulate cryptos.

In addition to the crypto regulatory bill, lawmakers are also considering another bill that would require the Federal Reserve to establish stablecoin issuance requirements while maintaining the authority of state regulators. This bill has been modified to address concerns raised by some Democrats, ensuring that stablecoin issuers cannot evade stricter oversight by opting for state regulation.

As negotiations continue on these bills, the crypto industry eagerly anticipates regulatory clarity and hopes that bipartisan support will lead to effective regulations that balance innovation and investor protection.

Shashank is the founder of yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash