House Republicans have taken a major step towards protecting investors in the crypto sector with the introduction of the Financial Innovation and Technology for the 21st Century Act. Chairman of the House Committee on Agriculture Rep. Glenn GT Thompson (R-Pa.) said in a statement that the bill is a significant milestone in the House Committees on Agriculture and Financial Services’ efforts to create a regulatory framework that safeguards consumers and investors.
The bill, which was first drafted in early June, seeks to provide a regulatory path for crypto exchanges to register with the U.S. Securities and Exchange Commission (SEC). It would also enable them to trade digital securities, commodities, and stablecoins all in one place. Rep. Dusty Johnson (R-S.D.) said in the statement that the bill establishes clear principles to ensure financial security and certainty as digital asset developers continue to innovate.
The introduction of the bill comes at a time when a lack of regulatory clarity and aggressive enforcement actions are causing established crypto businesses to consider leaving the U.S., and deterring startups from forming there.