Republican’s ‘landmark’ crypto bill clears 2 House committees

The market structure bill secured bipartisan support and moved through financial services and agriculture committees

article-image

US Representative French Hill | hill.house.gov modified by Blockworks

share

A day after the House Financial Services Committee delivered a win to the crypto industry and passed a bipartisan regulatory measure, members of the House Agriculture Committee gave the bill a green light. 

The Financial Innovation and Technology for the 21st Century Act passed through the Agriculture Committee Thursday afternoon. The Financial Services Committee did the same Wednesday evening after their markup. 

“This legislation marks a significant milestone in the House Committee on Agriculture’s efforts to create a much-needed digital asset regulatory framework that protects consumers and investors while promoting American leadership in finance and technology,” Agriculture Committee Chair Glenn Thompson, R-Penn., said during Thursday’s hearing. 

Rep. French Hill, chair of the inaugural Financial Services Subcommittee on Digital Assets, Financial Technology and Inclusion, introduced the legislation last week

Not all agriculture committee members were on board, though, Democrat members specifically raised concerns about the bill’s registration process for crypto broker-dealers. 

Rep. Jonathan Jackson, D-Ill., proposed an amendment to strike a section of the bill that allows firms who have filed a “notice of intent to register” to be exempt from certain enforcement actions from the Securities and Exchange Commission. 

“Allowing for ‘intent to register’ before those regulations are completed would be an absolute injustice to our constituents and retail investors,” Jackson said. “This industry needs to be under full-force regulation and oversight.” 

Thompson countered that the “notice of intent” allows firms who meet requirements for treatment of customer funds, disclosures and records to operate limitedly while the potentially years-long registration approval process plays out. The bill also allows the Commodity and Futures Trading Commission to issue enforcement actions against firms who have completed the “notice of intent” process. 

Jackson’s amendment was not approved by the committee. 

The committee did, however, offer its support to an amendment put forth by Rep. Yadira Caraveo, D-Col., which aims to modify the “notice of intent” provision. Under this amendment, these firms would be obligated to inform consumers that they are not fully approved.

The House Financial Services Committee also on Wednesday passed the Blockchain Regulatory Certainty Act, introduced by majority whip Rep. Tom Emmer, R-Minn. Emmer first introduced the legislation last session, but the bill failed to make it out of committee. The new version of the bill debuted on the House floor in March. 

The Agriculture Committee’s markup was much calmer than efforts in the House Financial Services Committee, which met at the same time to consider another set of bills, including a Republican-led stablecoin bill that took over the focus of the meeting.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research Report Templates.png

Research

ZKPs enable efficient offchain transaction processing and validation, resulting in increased throughput and reduced fees. Solana's ZK Compression leverages ZKPs to minimize onchain storage costs, while Sui's zkLogin streamlines user onboarding by replacing complex key management with familiar OAuth credentials.

article-image

The crypto asset manager lowered its planned fee from 0.25% to 0.15%, undercutting its competitors

article-image

Plus, a look at planned ETH ETF fees and how they differ from their BTC counterparts

article-image

North Korea suspected in breach of Indian exchange’s multisig wallet

article-image

Plus, Sanctum’s CLOUD token has officially launched — but not without problems

article-image

It’s not yet clear whether Donald Trump is pumping bitcoin. But an unofficial memecoin is still seeing benefit.