US Advances Crypto Regulation with New Legislative Moves

US Moves Closer to Crypto Regulatory Clarity

The United States has recently made strides towards establishing clearer regulations for the cryptocurrency industry. The House Financial Services Committee (FSC) voted 35–15 in favor of the Financial Innovation and Technology for the 21st Century Act. This legislation aims to clarify when crypto firms should register with either the Commodity Futures Trading Commission (CFTC) or the Securities and Exchange Commission (SEC), marking a significant step towards regulatory clarity.

Blockchain Regulatory Certainty Act

In a parallel development, the bipartisan Blockchain Regulatory Certainty Act, spearheaded by representatives from both the Republican and Democratic parties, was also approved by the FSC. This act focuses on reducing obstacles for blockchain developers and service providers. It targets entities such as miners, multisignature service providers, and decentralized finance (DeFi) platforms, aiming to streamline their operations by setting clearer guidelines.

Implications for the Crypto Industry

These legislative advancements signal a more structured approach to handling digital assets in the US. By defining regulatory responsibilities, the Financial Innovation and Technology Act could provide much-needed clarity for crypto businesses. Similarly, the Blockchain Regulatory Certainty Act could foster innovation by removing unnecessary requirements for blockchain-related services.

Global Context and Other Developments

While the US progresses with its regulatory framework, other countries are also making notable moves. Canada is implementing new capital rules for crypto holdings, while Russia has given final legal approval to its Central Bank Digital Currency (CBDC). Meanwhile, Binance is seeking the dismissal of a lawsuit filed by the CFTC, highlighting the ongoing legal and regulatory challenges in the global crypto landscape.