The United States House of Representatives (US) has passed a new law, the Eliminate Barriers to Innovation Act proposed by Republican Patrick McHenry.
If the act is passed by the Senate and signed by US President Joe Biden, then there will be clearer legislation on the crypto market especially the classification of digital assets as securities or commodities.
At the same time, there is a team comprised of officials from the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), including several fintech firms in the digital assets sector, researchers, financial firms and investor monitors.
It was established with the aim of analyzing the country’s current laws and regulations related to digital assets within a year.
This means they will be responsible for answering a number of issues including how regulations affect the crypto market and how those markets can be fairer, more efficient and more transparent; whether U.S. law makes the country more or less competitive in financial technology; and what appropriate security standards are established for the protection of cryptocurrencies and other intermediaries.
Not only that, they also need to submit proposals on how the US can reduce fraud and price manipulation in the crypto market, or protect investors and ensure crypto firms comply with the Bank Secrecy Act which requires financial institutions to fight money laundering and terrorist financing.
This is the first step in opening up space between supervisors and investors to create transparency without any misunderstanding between the two parties.
