The U.S. House of Representatives Prepares for a Crypto Regulation Vote
The U.S. House of Representatives is gearing up to vote on a major crypto bill that aims to clarify how digital assets are regulated. The bipartisan “Financial Innovation and Technology for the 21st Century Act” would empower the Commodity Futures Trading Commission (CFTC) to regulate crypto assets as commodities if the blockchain they run on is sufficiently decentralized.
Decentralized Blockchains and Regulation
The bill emphasizes that decentralized blockchains can’t be controlled unilaterally by any one person. It also sets a limit where no issuer or affiliated person can control 20% or more of the digital assets or the voting power of a decentralized chain. Digital assets linked to blockchains that aren’t decentralized would fall under the Securities and Exchange Commission (SEC) regulation as securities.
Bipartisan Support and Expected Vote
- Eight Republicans and three Democrats have sponsored the bill
- Expected to go to a vote this week
- The Blockchain Association and a16z Crypto express support
The Blockchain Association and a16z Crypto’s Support
The Blockchain Association, a crypto lobbying group, has expressed support for the potential legislation, and a16z Crypto, the digital asset investment arm of venture capital giant Andreessen Horowitz, states the act would “give blockchain projects a pathway to safely and effectively launch” in the United States.
Democratic Leaders’ Concerns
While House Democratic leaders don’t plan to whip against the bill, they have voiced their opposition. According to Politico journalist Eleanor Mueller, in an email sent to Democratic House members, the party leadership argues that the bill “undermines decades of legal precedent and case law, thereby creating uncertainty in our traditional securities market.”
Hot Take: The Implications of the Proposed Bill
The bill aims to provide clarity on how digital assets are regulated based on the decentralization of the blockchain they operate on. With bipartisan support, the bill is expected to go for a vote this week and has gained backing from industry players such as the Blockchain Association and a16z Crypto. While some Democratic leaders have expressed concerns about the bill, its passage could pave the way for a more structured regulatory framework for the crypto industry in the United States.
Source: Progress Chamber
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