{"id":17503,"date":"2023-06-02T23:48:28","date_gmt":"2023-06-03T03:48:28","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/draft-legislation-from-house-republicans-drums-up-support-from-crypto-advocates\/"},"modified":"2023-06-02T23:48:29","modified_gmt":"2023-06-03T03:48:29","slug":"draft-legislation-from-house-republicans-drums-up-support-from-crypto-advocates","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=17503","title":{"rendered":"Draft Legislation From House Republicans Drums Up Support From Crypto Advocates"},"content":{"rendered":"
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New draft legislation is drumming up support among cryptocurrency advocates who cheered its focus on defining what constitutes a security versus a commodity.<\/p>\n

Republican lawmakers teamed up on Friday in the US House Financial Services Committee and the House Agriculture Committee on a discussion draft to regulate digital assets.<\/p>\n

The legislation seeks clarity on when a digital asset would be considered a security and thereby regulated by the Securities and Exchange Commission, while creating a process on how digital assets are treated and how intermediaries can register with the SEC or Commodity Futures Trading Commission.<\/p>\n

\u201cI\u2019m especially encouraged by the attention the authors give to the discussion around what constitutes a security vs a commodity. Hopefully these definitions can settle that protracted debate once and for all,\u201d\u00a0Coinbase\u2019s Chief Legal Officer Paul Grewal tweeted on Friday afternoon.<\/p>\n

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The bill specifically creates a framework that would give the CFTC jurisdiction over digital commodities, while clarifying the SEC\u2019s jurisdiction over \u201cdigital assets offered as part of an investment contract.\u201d\u00a0<\/p>\n

The legislation also creates a framework for when certain digital assets would become decentralized and therefore a commodity under the CFTC, and no longer be under the SEC\u2019s jurisdiction \u2013 though the SEC can challenge that.\u00a0<\/p>\n

Brett Quick, head of government at the Crypto Council for Innovation, tweeted that she was encouraged to see the bill text.<\/p>\n

\u201cEstablishing clarity and transparency on when a digital asset is a security or a commodity is critical and defining the SEC’s and CFTC’s respective roles is an important step,\u201d Quick said.<\/p>\n

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Coordination on the Hill?<\/h2>\n

Senior policy officials said they were hopeful to talk with Rep. Maxine Waters, D-Calif., who used to chair House Financial Services on the legislation.\u00a0<\/p>\n

The officials also said the discussion draft was not shared ahead of the announcement on Friday with Democrats.\u00a0<\/p>\n

The House Agriculture Committee plans<\/u> to hold a hearing next week on digital assets called the \u201cThe Future of Digital Assets: Providing Clarity for Digital Asset Spot Markets.\u201d<\/p>\n

Coinbase\u2019s Grewal said he would be testifying at that hearing. \u00a0<\/p>\n<\/p><\/div>\n