The ‘Eliminate Barriers to Innovation Act’ requires to establish a digital asset working group to ensure collaboration between regulators and the private sector to foster innovation.
United States, April 21, 2021 /AlexaBlockchain/ – US House has passed a bill that aims to foster innovation in digital asset market in the US by making explicit crypto regulation.
- The U.S. House of Representatives on Tuesday passed H.R. 1602, introduced by Congressman Patrick McHenry.
- The ‘Eliminate Barriers to Innovation Act’ requires to establish a digital asset working group to ensure collaboration between regulators and the private sector to foster innovation.
- The working group will consist of appointees from the Commission as well as representatives from financial technology companies, financial firms, and small businesses, among others.
- U.S. financial regulators will now work together to create modalities for explicit crypto regulations in the US.
- H.R. 1602 was among six bipartisan financial services-related bills passed by Congress on Tuesday, with the McHenry-sponsored legislation focusing on regulatory clarity for cryptocurrencies.
- Introduced back in March, the bill seeks to clarify the roles of agencies like US SEC and CFTC in the policing of cryptocurrencies in the United States.
- The bill also seeks to answer the ongoing debate of whether crypto tokens are securities or commodities.
- The working group will produce a report within a year that will include an analysis of the domestic regulatory framework and the developments in other countries relating to digital assets.
- The report also requests insight into best practices to reduce fraud, protect investors, and assist in compliance with obligations under the Bank Secrecy Act.
Republican Leader McHenry, said:
“[This bill] requires the Securities and Exchange Commission and the Commodity Futures Trading Commission to establish a working group focused on digital assets. This is the first step in opening up the dialogue between our regulators and market participants and move to needed clarity.” Republican Leader McHenry.
