Lynn Johannson, Advisor, Sustainability and ESG
January 4th, 2024
Lynn Johannson, President of E2 Management Corporation and Catalyst for THE Collaboration
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House Committee Introduces Digital Asset Legislation: The Financial Innovation and Technology for the 21st Century Act
Release | Jul 27, 2023
The House Committees on Financial Services and Agriculture have introduced a groundbreaking piece of legislation, the Financial Innovation and Technology for the 21st Century Act.
The legislation, introduced by French Hill, Chairman of the Subcommittee on Digital Assets, Financial Technology and Inclusion, Glenn "GT" Thompson, Chairman of the House Committee on Agriculture, and Dusty Johnson, Chairman of the Subcommittee on Commodity Markets, Digital Assets, and Rural Development, is a significant milestone in the efforts to establish a regulatory framework that protects consumers and investors and fosters American leadership in the digital asset space.
See: Court Rules XRP Sales Not Investment Contracts: How the SEC Case Could Reshape Crypto Landscape
This act aims to establish a comprehensive regulatory framework for digital assets, fostering innovation while ensuring robust consumer protection.
Key features of the bill include:
- Increased oversight from the Commodities Future Trading Commission (CFTC).
- Exemption from registration for digital assets that meet specific requirements, including sales limits and ownership restrictions.
- Mandatory registration of intermediaries with the SEC or CFTC.
- Disclosure requirements similar to securities.
- Recognition that stablecoins and digital commodities are not securities.
- Provision for alternative trading systems (ATS) to trade digital assets and disintermediated trading.
- Establishment of a Joint Advisory Committee on Digital Assets involving both the SEC and CFTC.
- Mandated further study on Decentralized Finance (DeFi).
The bill is a response to the need for regulatory clarity in the digital asset space, which has been muddled with regulatory uncertainty and a lack of authority. It aims to provide clear rules of the road for market participants, ensuring financial security and certainty as digital asset developers continue to innovate.
Also read: Crypto Bill 2.0: Lummis-Gillibrand’s Vision for a Regulated Crypto Future
The legislation is expected to be considered in both the House Committees on Financial Services and Agriculture in the coming week. This introduction marks a pivotal moment for America's standing as the global leader in innovation and technology adoption, with digital assets and their underlying blockchain technology seen as the building blocks for the next generation of the internet.
The introduction of this legislation comes at a time when the European Union has approved comprehensive legislation, the Markets in Crypto Assets (MiCA), to create an updated regulatory ecosystem to support digital assets. Meanwhile, the SEC's regulation-by-enforcement approach has left many frustrated, highlighting the need for clear, supportive legislation like the Financial Innovation and Technology for the 21st Century Act.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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