The House Committee on Rules announced plans to review H.R.
4763, the Financial Innovation and Technology for the 21st Century Act, which
some legislators believe will be a crucial initial step towards regulatory
transparency pertaining to digital assets.
The measure is designed to furnish robust consumer
protections and regulatory certainty essential for fostering the growth of the
digital asset ecosystem in the U.S.
“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,” House
Financial Services Committee Chairman Patrick McHenry (R-N.C.) said in a
statement. “This includes an unprecedented joint effort by the House Financial
Services and Agriculture Committees, numerous hearings, and feedback
from members and stakeholders alike. With the floor vote announced today,
Congress will take a historic step to provide a clear regulatory
framework for digital asset markets. This legislation will
cement American leadership of the global financial system for decades to come
and bolster our role as an international hub for innovation.”
If adopted, digital asset developers would have to provide
accurate, relevant disclosures, including information relating to the digital
asset project’s operation, ownership and structure. Digital asset
customer-serving institutions, such as exchanges, brokers and dealers will be
required to provide appropriate disclosures to customers, segregate customer
funds from their own and reduce conflicts of interest through registration,
disclosure and operational requirements.
Supporters of the measure also state that it would
strengthen the market by protecting digital asset projects and will protect
digital asset customer-serving institutions by establishing clear lines between
the Securities and Exchange Commission and the Commodities Futures and Trade
Commission. It also would create comprehensive registration regimes for
lawfully serving customers in digital asset markets.
The legislation was introduced by Rep. Glenn Thompson
(R-Pa.) in July last year with support from a bipartisan group of 11 lawmakers,
including eight Republicans and three Democrats.