US Crypto Bill

What is The News About?

The bill could change the way the crypto business is regulated since it treats cryptocurrency as commodities instead of securities. Additionally, it reduces the SEC’s supervision and gives major regulatory authority to the Commodity Futures Trading Commission (CFTC). The digital asset industry has long griped about how the SEC’s conventional disclosure rules don’t apply to them. In addition, the bill establishes a unique system of registration and transparency for digital asset businesses. A number of senators have introduced their own bills to reform crypto rules, so it will have a tough time passing through that chamber.

In spite of the unusual cautionary note from the US securities authority, the SEC, regarding the financial dangers associated with cryptocurrency, the US House of Representatives approved a bill to create a new regulatory framework for cryptocurrencies on Wednesday.

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Why Is It Important?

The 21st Century Financial Innovation and Technology Act, proposed by Republicans, was passed with a bipartisan vote of 279 to 136. Nevertheless, according to media reports, the Senate’s consideration of the legislation remains uncertain at this time.Legislators who are in favor of the bill say it will make regulations easier to understand and will help businesses expand.
The industry is getting a surprising boost with the House approval, and the SEC has hinted that it may approve applications for spot ether exchange-traded funds.The bill “would create new regulatory gaps and undermine decades of precedent regarding the oversight of investment contracts, putting investors and capital markets at immeasurable risk,” cautioned SEC Chairperson Gary Gensler. In a different vein, Cryptocurrencies should be regulated similarly to conventional assets, according to Gensler, who has used high-profile prosecutions, fraud cases, bankruptcies, and failures as evidence. He stated that the legal safeguards afforded to investors by securities laws would be disregarded if investment contracts recorded on a blockchain were to be included in the Bill. Gensler further argued that the Bill was flawed because it gave crypto investment contract issuers the power to self-certify their products as digital commodities, giving the SEC a mere 60 days to contest these assertions.

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Benefits

1. The bill clarifies crypto regulations, treating cryptocurrencies as commodities, which simplifies compliance for businesses.

2. Shifting regulatory authority to the CFTC reduces SEC oversight, addressing industry concerns over conventional disclosure rules.

3. The bill’s unique registration system enhances transparency and aims to foster growth in the digital asset sector.