House rules committee to consider bill that provides regulatory clarity on digital assets

The House Committee on Rules will consider a bill that seeks to provide regulatory clarity for digital assets.

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Specifically, the rules committee will consider the Financial Innovation and Technology for the 21st Century (FIT21) Act (H.R. 4763). The FIT for the 21st Century Act is seen as a first step towards achieving regulatory clarity for digital assets. It provides robust consumer protections and regulatory certainty necessary to allow the digital asset ecosystem to flourish in the United States.

“For far too long, the U.S. digital asset ecosystem has been plagued by regulatory uncertainty that has stifled innovation and left consumers unprotected,” House Financial Services Committee Chairman Rep. Patrick McHenry (R-NC) said. “This comprehensive market structure legislation—the Financial Innovation and Technology for the 21st Century Act—is the culmination of years of bipartisan efforts to finally provide clarity. This includes an unprecedented joint effort by the House Financial Services and Agriculture Committees, numerous hearings, and feedback from members and stakeholders alike.

The House Committee on Rules is expected to conduct a floor vote on this bill later this month.

“FIT21 is a regulatory foundation to safeguard consumers and investors but also propels American leadership in digital finance,” House Committee on Agriculture Chairman Glenn Thompson (R-PA) said. “Our collaborative effort establishes the essential clarity and security needed to foster innovation and ensure our nation’s prominence in the global technological revolution. This is the product of extensive feedback from stakeholder and market participants and historic coordination with the Financial Services Committee. This legislation is desperately needed, and I am excited to be able to advance that effort today.”

The bill was introduced last year by Thompson, along with Reps. French Hill (R-AR), Dusty Johnson (R-SD), Tom Emmer (R-MN), and Warren Davidson (R-OH). McHenry is a cosponsor of the legislation.

The bill provides the Commodity Futures Trading Commission (CFTC) with new jurisdiction over digital commodities and clarifies the Securities and Exchange Commission’s (SEC) jurisdiction over digital assets offered as part of an investment contract. Further, the bill establishes a process to permit the secondary market trading of digital commodities if they were initially offered as part of an investment contract. Finally, the legislation imposes ccustomer disclosure, asset safeguarding, and operational requirements on all entities required to be registered with the CFTC and/or the SEC.