The US House Financial Services Committee and House Agriculture Committee have proposed a draft discussion that may pave the way for certain crypto assets to be classified as digital commodities. This draft bill seeks to bring regulatory clarity to cryptocurrency firms in the US and presents an alternative to the current regulatory approach by the SEC.
It prohibits the SEC from blocking digital asset platforms from registering as regulated alternative trading systems, while encouraging these platforms to offer digital commodities and payment stablecoins.
The proposed bill offers a framework allowing specific digital assets to be classified as digital commodities if they are functional, decentralized, and obliges the SEC to supply an analysis of any counter-arguments against a firm being considered decentralized. The bill also pushes the SEC to update its rules to let broker-dealers custody digital assets given certain requirements, and to modernize regulations related to digital assets.
Paul Grewal, chief legal officer at Coinbase, praised the bill as it lays a strong foundation for regulatory jurisdiction and definitions. However, he emphasized the need for a thorough review before formal introduction. Meanwhile, the bill, presented by Republicans Patrick McHenry and Glenn Thompson, hasn’t included inputs from Democrats. Despite occasional bipartisan support for crypto regulation, it’s uncertain how far this proposed legislation can progress in a divided Congress.
At the time of this report, both houses of Congress had approved legislation to prevent the US government from defaulting by raising the debt ceiling, with President Biden expected to sign the bill into law on June 2.
