A bill that will establish a clear regulatory framework for cryptocurrencies in the US has passed another hurdle in Congress when the House of Representatives Agriculture Committee approved it on Thursday.
The bill aims to clarify when a digital asset can transition from a security to a commodity and how different institutions should oversee the crypto market.
The bill, known as the Financial Innovation and Technology for the 21st Century (FIT) Act, was passed by the House of Representatives Financial Services Committee yesterday after a highly controversial vote.
The House of Representatives Agriculture Committee, which has jurisdiction over commodities and futures markets, passed the bill unanimously with broad bipartisan support.
Some Democrats proposed changes to improve the bill, and these were passed by Republican committee chairman Glenn Thompson. Thompson lauded the bill as a landmark in creating a digital asset regulatory framework that protects consumers and investors while promoting American leadership in finance and technology.
The bill is seen as the most important piece of crypto legislation to get this far in Congress as it will provide much-needed clarity and certainty for the industry and its users.
The bill will direct the SEC and the Commodity Futures Trading Commission (CFTC) to create rules to determine when a digital asset is a security or commodity and how digital asset trading platforms, custodians, brokers and advisors are regulated.
*Not investment advice.
