Recent discussions in the US Congress focus on new bills that could significantly change cryptocurrency regulation. Measures like the CLARITY Act are seen as a way to prevent financial catastrophes similar to the FTX collapse.
Discussion of Crypto Bills
The House Rules Committee met to discuss three bills, including the CLARITY Act, introduced at the end of June aimed at providing a clear regulatory framework for the crypto industry.
Consumer Protection and New Rules
Republican Representative French Hill emphasized that the proposed legislation contains strict consumer and market protections. For example, co-mingling of customer funds is prohibited, directly addressing one of the main failures of FTX. He noted that the existing system has gaps that leave consumers unprotected.
> "For too long, America’s digital assets regime has been delivered in the worst possible world: regulation by enforcement that stifles responsible innovation and an existing commodity and security regulatory framework that’s plagued by gaps that leave consumers unprotected."
The bill includes clear definitions of digital commodities and assets, specific disclosure requirements, and retail investor protections through carefully calibrated resale limitations.
Two Additional Stablecoin Bills
In addition to the CLARITY Act, the GENIUS Act, which provides a regulatory framework for stablecoins and sets rules for issuers, will also be debated. The Anti-CBDC Surveillance State Act, which aims to prevent the Federal Reserve from issuing a central bank digital currency, is also up for discussion and voting this week.
It is clear that rapidly adopting new norms in the cryptocurrency space is an important step towards ensuring consumer protection. Further discussions on other initiatives that could enhance the functionality and security of digital assets in the US are anticipated.
