A draft bill that would offer a way for digital assets that started out as securities to eventually be regulated as commodities has been released by the Republican chairs of two key House committees.
The draft bill, titled “The Financial Innovation and Technology Act for the 21st Century,” was unveiled on Thursday by House Financial Services Committee Chairman Patrick McHenry and House Agriculture Committee Chairman Glenn Thompson.
The draft bill also includes a provision that would limit the amount of digital assets non-accredited investors can purchase in initial offerings.
The provision states that such investors cannot purchase more than 10% of their annual income or net worth in digital assets offered through a new exemption similar to current regulations for securities offerings.
This provision has sparked some controversy among crypto lovers, who claim that it will restrict retail investors' participation in the crypto market.
FOX Reporter Eleanor Terrett Denies Spreading FUD
However, FOX Business correspondent Eleanor Terrett explained on Twitter that this provision only applies to issuers' initial offerings to non-accredited investors through the new exemption and not to all digital asset purchases.
He added that initial offerings of a digital asset not made through this exemption will be subject to different rules.
The exemption is a new provision in the draft bill that allows issuers of digital assets to offer them to non-accredited investors through a process similar to existing regulations for securities offerings such as Regulation D, Regulation A or Regulation Crowdfunding.
*Not investment advice.