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The Leader’s Floor Lookout: Wednesday, May 22, 2024

Here’s what to watch for on the House Floor today:
Establishing a Clear Regulatory Framework for Digital Assets

As cryptocurrency and digital assets grow in popularity and potential to shape future internet technology and monetary policy, America’s lack of a clear regulatory framework is holding us back, stifling innovation, and putting American consumers at risk.

Without regulatory clarity, responsible actors who would innovate and grow new goods and services in this rising digital market are hindered and unprotected, while bad actors who attempt to use the lack of certainty in the new technology flourish – and confusion prevents the public from telling which is which. 

Meanwhile, regulators like the Securities Exchange Commission (SEC) have taken an enforce-first, clarify-later approach to digital asset regulation that leaves developers, brokers, dealers, and consumers in the dark, while expanding their own power and jurisdiction at will and acting without direction from Congress. 

It is vital Congress establish a clear regulatory framework for digital assets to strengthen consumer protections that aren’t in place today, promote innovation, increase transparency in both federal requirements and market participants, and draw the line between SEC and Commodity Futures Trading Commission (CFTC) jurisdictions.

House Republicans are bringing legislation that would allow digital assets and financial innovation to thrive under regulatory certainty and consumer protections in the digital marketplace – ensuring the United States remains a global leader in the finance sector now and in the future.

H.R. 4763, the Financial Innovation and Technology for the 21st Century Act, introduced by Rep. GT Thompson, establishes a clear regulatory framework for digital assets, clarifies the CFTC’s jurisdiction over digital commodities and the SEC’s jurisdiction over digital assets offered as part of an investment contract, and implements strong consumer protections.

As other countries rush to build frameworks for digital assets and get a leg up in the race to innovate and develop in the digital asset sector, the United States must act to ensure we are not left in the past. This bill sets our country up for future success and global leadership in the digital market.