U.S. FSC to discuss regulatory clarity for crypto assets

• The Committee will hold a meeting on 26 July to mark up these legislations.
• The recent setback suffered by the SEC in its legal battle with Ripple has spurred legislators to push for such bills.

Patrick McHenry (Rep.), the chairman of the House Financial Services Committee (FSC), announced the markup of legislation aimed at providing regulatory clarity around crypto assets on 22 July.

#NEW: Chairman @PatrickMcHenry announces a markup of legislation to provide clarity for the digital asset ecosystem and address national security concerns.

Read more ?https://t.co/kb2smj24Io

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— Financial Services GOP (@FinancialCmte) July 22, 2023

McHenry is a Congress Representative from North Carolina.

The Committee will hold a meeting on 26 July to mark up three legislations about regulatory clarity. They would cover cryptocurrency, stablecoins, and blockchain networks.

It was Representative McHenry himself who introduced the markup on clarity for stablecoin payments. It purportedly aims to bring regulatory clarity for the issuance of payment stablecoins.

The crypto clarity markup is aimed at establishing a cryptocurrency market structure framework that is fit for the unique characteristics of virtual assets. The blockchain markup details how blockchain developers do not need to acquire licenses as long as these projects don’t work on cryptocurrencies.

Earlier on 20 July, the FSC introduced the Financial Innovation and Technology for the 21st Century Act. Arkansas Representative French Hill (Rep.), South Dakota Representative Dusty Johnson (Rep.) and, Pennsylvania Representative Glenn Thompson (Rep.) introduced the act.

I, alongside @CongressmanGT and @RepDustyJohnson, today introduced landmark legislation to establish a functional regulatory framework for #DigitalAssets that will protect consumers and keep innovation in the United States. Read more:@FinancialCmte @HouseAgGOP https://t.co/jWjWrFfdL8

— French Hill (@RepFrenchHill) July 20, 2023

Representative Hill said,

“This legislation would not only have prevented FTX from stealing billions of customer funds, but also establishes robust consumer protections and clear rules of the road for market participants.”

Representative Johnson remarked,

“The crypto industry wants clarity and our collaborative bill gives both the CFTC and SEC a seat at the table. Our bill establishes clear principles to ensure financial security and certainty as digital asset developers continue to innovate.”

SEC’s legal setback spurs a Republican flurry of crypto legislations

The recent enforcement actions of the U.S. Securities and Exchange Commission (SEC) against crypto platforms have polarized the political climate of the U.S. Republican members of the Congress have brought forward a number of legislations around crypto regulations recently.

A few days back, the SEC suffered a setback in its legal battle against the crypto exchange Ripple [XRP] when the court ruled that programmatic sales of crypto assets cannot be constituted as securities violation. It has only spurred legislators to push for bills around crypto regulation.