US House Republicans Propose New Crypto Asset Rules

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US House Republicans Propose New Crypto Asset Rules

US House Republicans Propose New Crypto Asset Rules

Bill proposed by Republican chairmen of major U.S. House of Representatives committees seeks to establish oversight of the digital asset industry and provide cryptocurrency exchanges with a pathway to register with the Securities and Exchange Commission (SEC) of the United States. The proposed bill aims to meet industry demands by allowing regulated crypto businesses to trade digital securities, commodities, and stablecoins on a single platform. While the bill has yet to garner support from Democrats, it recognizes the SEC’s continued power to determine which assets fall within its jurisdiction. The legislation also suggests that existing crypto assets would be exempt from enforcement action while regulators work to establish new rules and regulations.

The proposed legislation not only addresses the distinction between commodities and securities, but also introduces the concept of a digital commodity exchange regulated by the US Commodity Futures Trading Commission (CFTC). This new category of registered businesses would facilitate trade in certified crypto products while adhering to regulatory protections and CFTC measures against market manipulation. The bill reflects ongoing efforts to modernize crypto-specific oversight and foster dialogue between Republicans and Democrats, in hopes of finding common ground and shaping comprehensive regulation in the sector. However, the fate of the bill in the Senate, particularly with regard to the position of Senator Sherrod Brown, chairman of the Senate Banking Committee, remains uncertain.

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