By Darren Parkin
by Sheila Warren, CEO of the Crypto Council for Innovation
The US regulatory permafrost is thawing. For the first time, Congress took critical steps to establish a comprehensive federal regulatory framework for digital assets in the US.
After yesterday’s bipartisan vote to advance the FIT for 21st Century Act out of the Financial Services Committee, today, the House Agriculture Committee voted to approve the legislation by a bipartisan voice vote. https://agriculture.house.gov/calendar/eventsingle.aspx?EventID=7673.
It’s a significant marker that shows keeping the status quo is not an option. There is too much at risk for consumers, US competitiveness and national security to take a back seat.
CCI and its members appreciated the opportunity to work with the House Agriculture and Financial Services Committees and their members to support efforts to establish a clearly defined regulatory regime to govern digital asset markets.
Now more than ever, it is critically important that cryptocurrency investors, blockchain developers, crypto exchanges, and other intermediaries be provided clarity as to how existing market regulations apply (or don’t) to digital assets.
Policymakers recognise that not only does legal uncertainty stifle responsible innovation, but it threatens to create an environment in which American investors must turn offshore. Requiring unnecessary intermediaries that add costs and have been rendered obsolete by tech advancement is the equivalent of mandating horses be hitched to the front of cars in order to pull them.
While CCI has outstanding questions about some parts of the legislation, we appreciate the complexity of the legislative process, and hope that we can continue to work with leadership to further refine the Act as it advances.
Of note, the definition of “digital asset trading system” should be narrowed and the new exclusion category to the definition of “digital asset” included in Section 101 and the restrictions on mixed digital asset transactions further clarified.
Crypto remains a very complex and nuanced topic. CCI remains strongly strong supportive of these encouraging steps towards advancing much needed legislation. CCI stands by to continue to engage to ensure that the legislation lands on a careful balance between establishing safeguards and fostering innovation.
