US Republicans unveil draft bill for cryptocurrency regulation

Two US Republican lawmakers unveiled a draft bill Friday to
provide a clearer regulatory framework regarding cryptocurrencies,
Azernews reports, citing Anadolu Agency.

“The current regulatory framework for digital assets hinders
innovation and fails to provide adequate consumer protection,”
according to the bill — Digital Asset Market Structure Discussion
Draft.

“This functional framework would provide digital asset firms
with regulatory certainty and fill the gap that exists between the
authorities of the Commodity Futures Trading Commission (CFTC) and
the Securities and Exchange Commission (SEC),” said the draft
prepared by the House of Representatives Committee on Financial
Services and House Committee on Agriculture.

The draft aims to give the CFTC authority over digital
commodities and clarify the SEC’s jurisdiction on digital assets
offered as part of investments.

It also wants to provide customer protection for all crypto
entities by requiring them to be registered with the SEC and
CFTC.

“This discussion draft is a critical first step toward
much-needed clarity for the digital asset ecosystem,” said Rep.
Patrick McHenry from North Carolina, who co-authored the bill.

“Our goal is to strike the appropriate balance between consumer
protection and encouraging responsible innovation,” he wrote on
Twitter. McHenry is the head of the House Financial Services
Committee.

The other author of the bill, Glenn Thompson from Pennsylvania,
is the head of the House Committee on Agriculture. He said the
draft tries to bring regulatory certainty to “novel and emerging
technologies.”

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