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U.S. House Approves Major Crypto Bill, Pushes For A Regulatory Framework
A noteworthy development has occurred in regulating the United States’ crypto space as a House Committee has approved a bill to bring clarity into the industry.
On July 26, the U.S House Financial Services Committee approved the Financial Innovation and Technology Act for the 21st Century Act, popularly known as FIT21.
#PASSED: In a historic first, the House Financial Services Committee just advanced the BIPARTISAN FIT for the 21st Century Act to protect consumers and provide clear rules of the road for the digital asset ecosystem.
Up next: @HouseAgGOP considers the legislation tomorrow. pic.twitter.com/kOyLmolPuz
— Financial Services GOP (@FinancialCmte) July 26, 2023
After a long deliberation, the House Committee greenlighted the FIT21 bill with a 35-15 voting result.
It is worth stating that the FIT21 has been garnering attention, with Coinbase CEO Brian Armstrong taking to Twitter to urge crypto users in the United States to actively push for this bill’s approval.
Although Armstrong believed the bill would likely be modified as it passes the complete legislative process, its approval by the House Committee was vital to safeguard the crypto space, “American innovation and national security.”
The FIT21 Act – A Landmark Legislation For U.S. Crypto Space?
The Financial Innovation and Technology for the 21st Act was recently introduced to the House on July 20.
In the Act’s introductory statements, Representative French Hill, who serves as Chairman of the House Subcommittee on Digital Assets, Financial Technology, and Inclusion, referred to the bill as a “landmark legislation” critical to creating an efficient regulatory framework to safeguard crypto users’ interests.
The U.S. House Representative further stated that this bill would have prevented the FTX crisis and provided much-needed clarity in crypto. 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.
In addition, the FIT21 Act will enhance cooperation between the two financial regulators trying to assume control of the U.S. crypto market. U.S. Representative Dusty Johnson, another sponsor of the bill, emphasized this motion saying:
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.
U.S. Congress Finally Stepping Up Crypto Regulations
The call for a regulatory framework in the U.S. crypto space has been on for quite some time, especially with multiple clampdowns by the SEC on various crypto exchanges and businesses in 2023.
U.S. Patrick McHenry highlighted this situation, stating the United States is “falling behind” other nations regarding digital asset regulation.
However, the introduction of the FTI21 Act, along with other bills such as the Blockchain Regulatory Act, the Digital Asset Market Structure Proposal, and the “Lummis-Gillibrand” Bill, suggests that the United States government may be ramping up its regulatory efforts in the crypto landscape.
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US Lawmaker Behind Pro-Crypto Legislation To Introduce Clear Crypto Bill In 2022
Pro-bitcoin Senator Cynthia Lummis of the United States is planning to present a comprehensive crypto bill next year that will explain how different digital assets will be classified and taxed.
Pro-Bitcoin Senator Proposes Crypto Bill
Senator Cynthia Lummis, a Bitcoin evangelist, plans to introduce a comprehensive crypto bill in the new year.
Lummis’ proposed bill, according to Bloomberg, aims to establish regulatory clarity on stablecoins, instruct regulators on which cryptos belong to which asset classes, and provide consumer protections. In addition, the senator is said to have advocated forming an institution to regulate the crypto market under the joint jurisdiction of the Securities and Exchange Commission and the Commodity Futures Trading Commission.
The bill would be one of Congress’ first attempts to create comprehensive crypto legislation, and it would have to pass through a Senate that is divided on the issue. Meanwhile, officials at the Federal Reserve, the Treasury Department, and other agencies are considering their own regulations for various aspects of the cryptocurrency industry.
On Twitter, Lummis urged Americans to contact their senators and encourage them to support the bill, adding that she was looking for bipartisan cosponsors. Despite being a staunch conservative who voted against a commission to investigate the Capitol attack on Jan. 6 and against impeaching the former president, the Wyoming worked with Democrats Mark Warner and Kyrsten Sinema to “fix” the definition of broker in the infrastructure bill signed into law in November.
Welcome bipartisan cosponsors! Please encourage your senator to reach out and consider it. https://t.co/ndIfFAkj0L
— Cynthia Lummis 
(@CynthiaMLummis) December 23, 2021
Any bill introduced in the Senate would need the support of at least 60 senators to be considered for a vote. Democrats currently have 50 of the Senate’s 100 seats, with Vice President Kamala Harris acting as a tiebreaker in the event of a tie.
Bitcoin needs to Hold $51k has support. Source: TradingView
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Senator Lummis Owns Bitcoin
Lummis declared she purchased Bitcoin (BTC) worth between $50,001 and $100,000 as part of the Stop Trading on Congressional Knowledge Act, despite being a pro-Bitcoin advocate before being elected to the Senate.
Lummis has been vocal about Bitcoin and its advantages, as well as her support for the technology. In November, the senator drew a line between Bitcoin and other cryptocurrencies, saying that the peer-to-peer monetary network is “fully decentralized” and “clearly a commodity,” while “everything else has to be monitored differently,” comparing their behavior to that of stocks.
Lummis has previously chastised her colleagues for voting to raise the US debt ceiling by $480 billion, stating that Bitcoin is a gift from God in the face of bad government policies.
Her support for the crypto industry prompted her to write an op-ed for the New York Times, urging Congress to block the nominations of Jerome Powell and Lael Brainard to the Federal Reserve Board of Governors because of their “political approach to digital assets” in her home state, which has passed a number of crypto-friendly laws.
Related article | Paraguay’s Passes Bill To Regulate Crypto, Targets Mining Companies
Featured image from Pixabay, chart from TradingView
Paraguay’s Passes Bill To Regulate Crypto, Targets Mining Companies
The Senate of Paraguay has passed a bill on Thursday that aims to regulate cryptocurrency mining and trading in the country.
Bill Seeks To Regulate Crypto Trading
On Thursday, the Senate of Paraguay enacted a law aimed at regulating Bitcoin and cryptocurrency trading and mining in the country. Senator Fernando Silva Facetti, the bill co-author, said on Twitter that the bill will now be debated in Paraguay’s Chamber of Deputies in 2022.
In Paraguay, the bill does not make bitcoin legal tender. During a conversation with Paraguayan Congressman Carlitos Rejala in July, an exclusive peek at the draft bill was released. The bill hinted at stronger regulatory oversights from the country’s regulators when it came to bitcoin mining, as well as an overarching purpose of providing investor safeguards from enterprises that offer bitcoin services.
Rejala said at the time,
“With this we want to welcome the innovation of cryptocurrencies in Paraguay to the world. This is the result of a very strong and arduous teamwork of many experts in the field, both local and foreign.”
According to the bill, the Industry and Commerce Secretariat will be in charge of overseeing crypto mining in the country, with the support of the Anti-Money Laundering Office and the National Securities Commission. Meanwhile, the National Electricity Administration will be involved in the activity’s regulation.
Meanwhile, despite not explicitly stating the concept of an exchange, the bill plainly suggests some form of record-keeping for any individual or established business entity interested in providing crypto trading or custody services to others.
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Paraguay Targets Crypto Miners
The bill recognized that Paraguay consumes barely one-third of the energy it produces is also included in the bill. Crypto mining activities, if controlled, would almost certainly compensate for the thousands of megawatts of electricity that Paraguay currently does not utilize.
In summary, the law aims to take advantage of the Latin American country’s surplus energy, and it will be debated by the Chamber of Deputies in 2022, as previously stated.
Bitcoin miners might benefit from “thousands of megawatts that Paraguay currently has as surplus,” according to the bill, assuming it falls under the country’s restrictions. The industry would be controlled jointly by the Ministry of Industry and Commerce, the National Securities Commission, the Anti-Money Laundering Office, and the National Electricity Administration in Paraguay, according to the legislation.
The cost of electricity in Paraguay, which is the lowest in the region at roughly $0.05 per kilowatt-hour, is one of the key attractions for mining companies, according to congressman Rejala, who added that nearly 100 percent of energy output originates from hydroelectric sources.
BTC crashes to $46k | Source: BTCUSD on TradingView.com
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Featured image from Pixabay, chart from TradingView
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