US House panel to vote on cryptocurrency bill in coming weeks

US House panel to vote on cryptocurrency bill in coming weeks

Digital assets are playing a pivotal role in the new financial and payment settlement system. Countries are planning and drafting respective rules and regulations for the development of a foolproof digital ecosystem.

The United States congressional committee drafting new rules for digital assets plans to debate, and likely advance, two proposed new laws in the second week of July. This move is considered a major kickstart in the U.S. digital atmosphere, the country has been sceptical about cryptocurrencies and digital assets.

House Financial Services Committee Chair Patrick McHenry, R-N.C., told his panel that he plans to hold a session on debating, changing, and likely advancing legislation that would create a more distinct pathway for digital assets to transition from security investments to commodities, which have lower reporting and regulatory requirements, along with other market structure-related provisions.

McHenry and Rep. Glenn ‘GT’ Thompson, R-Pa, the Republican chair of the House Agriculture Committee drafted the legislation, though it will need support from Democrats in the Senate and President Joe Biden’s signature to become law. The committee will also debate a separate bill to create a comprehensive regulatory framework for stablecoins, written primarily by McHenry and Rep. French Hill, R-Ark.

The July session will allow members of the committee to introduce changes to the text, with the final version subject to an up or down vote to report it favourably from the panel. Advancing the bills from the committee would tee them up for votes in the full House of Representatives.

The proposed legislation from the House Financial Services and Agriculture Committees could provide a more comprehensive approach to regulating digital assets, offering investors and businesses greater clarity and stability in the market.

The committees encourage stakeholders and market participants to provide constructive feedback to help improve the legislation and ensure that America remains the leader in financial and technological innovation.

This move related to regulation can establish new dynamics in the crypto ecosystem. The United States is considered to have an adamant move in the crypto sphere, here the Democrats and Republicans debate play an important role but these restrictions in extending arms and accessing scope hindered the growth of the new financial ecosystem.

It was also reported earlier this month by the U.S. think tank that severe regulations and high taxation of crypto assets in the States have caused an impediment in the financial sector and can have implications for future development. Therefore, this contemporary move can bring new yearnings to the United States cryptocurrency market.

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