US Congressmen Propose Crypto Bill, Get Praise

The United States House Financial Services Committee and House Agriculture Committee have drafted a pivotal document.

Introduced by Republicans Patrick McHenry and Glenn Thompson, it offers establishing a regulatory framework for digital assets and more. Its goal is to provide a clear-cut cryptocurrency regulation playbook.

The lengthy draft contains a number of proposals. Foremost, it focuses on the controversial practices that the US Securities and Exchange Commission  (SEC) employs. Specifically, its failure to elucidate what constitutes a security, and what does not. 

The bill envisions that certain digital assets are viewed as digital commodities as long as they’re functional and decentralized. In case the US deems otherwise, it is obliged to provide a detailed explanation as to why this is the case and why it does not consider that specific company to be decentralized.

“The Act also requires the SEC to modify its rules to allow broker-dealers to custody digital assets, if they meet certain requirements,” said the draft. “Additionally, the Act would require the SEC to write rules to modernize certain regulations for digital assets.”

In response to the draft bill, some representatives of large American companies made it clear they favored it. Most prominently, Coinbase, which is gearing up for a lawsuit with the SEC. 

The company’s Chief Legal Officer Paul Grewal wrote, “Today’s market regulation bill from @PatrickMcHenry and @CongressmanGT lays a strong foundation for regulatory jurisdiction and definitions, BD rules, and consumer protections. I’m eager to share more on this next Tuesday  before the @houseaggop.”

He also added a more in-depth review should be carried out before it makes it to the next legislative stage.

Previously, Gagarin News reported that the EU will require Web3 platforms to comply with AML legislation.