U.S. House Passes Bill to Develop SEC CFTC Task Force

The United States House of Representatives passed a bill intending to bring the (Securities and Exchange Commission) and CFTC (Commodities Futures Trading Commission) collectively to establish digital asset rules. It passed the Eliminate Barriers to Innovation Act of 2021, endeavouring to establish the regulatory framework encompassing cryptos. U.S. watchdogs are studying ways to create and adapt their laws to the swiftly evolving world of cryptocurrencies. The bill is ready to be introduced in the Senate. The Eliminate Barriers to Innovation Act of 2021 attempts to cast some information on the complex regulatory landscape that prevents the growth of cryptocurrency businesses.

Recently, in the U.S., distinct criteria are due to the multitude of organizations included in administering several economic activities. For instance, the CFTC, the IRS, the SEC, and the OCC sometimes have conflicting views on important aspects of cryptocurrencies. This has been fundamental for Ripple’s argument against the SEC, which right now claims that XRP is a security. Moreover, a joint task force comes into existence with the assistance of authorities unrelated to the regulatory bodies. It will provide information on the proper or acceptable way to manage cryptocurrency problems and provide a consistent regulatory framework.

Cynthia Lummis on the Recent Progress of U.S. Government

Furthermore, the non-government advisors would involve representatives from various fintech companies, financial firms, investor protection organizations, crypto startups, data analytics businesses, and institutions that promote investment in historically underserved companies. As per the legal text, the group will have one year to issue a report with numerous suggestions about the production and stability of markets, protection of entities included in financial services with cryptocurrencies, features linked to cybersecurity, and tips on compliance with AML (anti-money laundering) and countering the funding of terrorism obligations below the Bank Secrecy Act.

Moreover, the efforts display optimism to those concerned regarding the lack of legal certainty linked with the crypto space. As per Republican Senator Cynthia Lummis, this action confers a change of perception in the U.S. government. Lummis also declared that traders and supporters had nothing to bother about following the interest in regulating the space has no clear connection to the possibility of stopping its development. Lummis revealed that regulators do not fully understand the crypto-verse, so they require expert help to know how these new technologies operate and how they can be regulated properly.