• The House Financial Services Committee (HFSC) approved a slew of proposals related to digital asset regulation last month, which includes the Financial Innovation and Technology for the 21st Century Act (FIT 21), Clarity for Payment Stablecoins Act of 2023, Digital Taxonomy Act of 2023, and Token Taxonomy 2.0 Act.
• FIT 21 would clear confusion about what jurisdiction the Commodities and Futures Trading Commission (CFTC) has over digital assets, versus the Securities and Exchange Commission (SEC).
• The Clarity for Payment Stablecoins Act of 2023 would create clear rules around stablecoin issuance, and detail what authorities the Federal Reserve has over the sector.

Crypto Bills Now Ready For US Congress

The Financial Innovation & Technology for the 21st Century Act

The House Financial Services Committee (HFSC) approved a proposal known as ‘Financial Innovation & Technology for the 21st Century’ or FIT 21 which received bipartisan support from both Republicans and 6 Democrats. The bill would help clarify confusion about what jurisdiction the Commodities and Futures Trading Commission (CFTC) has over digital assets, versus the Securities and Exchange Commission (SEC). Although some Democrats argued that it was friendly to industry, others believed it was an important step up from current regulations.

Clarity for Payment Stablecoins Act of 2023

This act proposed would create clear rules surrounding stablecoin issuance as well as detail what authorities the Federal Reserve has over this sector. Unfortunately many Democrats considered this bill to be rushed by chairman Patrick McHenry with them saying it was deeply flawed.

Digital Taxonomy Act of 2023

The Digital Taxonomy act is focused on regulating businesses working with cryptocurrencies or other digital tokens in order to protect consumers from fraud or manipulation within this market. It also outlines how existing laws should apply to this new technology while also encouraging innovation in these areas while making sure consumer protection is at its forefront.

Token Taxonomy 2.0 Act

Building off from previous acts such as Token Taxonomy 1.0 this act seeks to codify definitions regarding cryptocurrency tokens into law by defining specific terms such as “digital tokens” ,”digital assets” and “virtual currencies” . This will help protect investors who use these coins without having any fear that their investments may not be protected by law.

Conclusion

These bills have been proposed in order to provide clarity on certain aspects within cryptocurrency regulation while also protecting consumers who use cryptocurrencies or virtual tokens from potential frauds or manipulation within markets so they can be sure that their investments are safe under existing laws . It will also help promote innovation within these areas while still making sure consumer protection remains at its forefront