Odaily News On Wednesday, a significant committee in the U.S. House of Representatives approved the legislation called the "21st Century Financial Innovation and Technology Act," supported by cryptocurrency advocates, which aims to establish clearer rules for the emerging industry.



The legislation, led by Republicans, was approved by the House Financial Services Committee with a vote of 35 to 15. It will establish rules for when cryptocurrency companies must register with the SEC or CFTC. It provides a process for digital asset issuers to prove to the SEC that the blockchain network is sufficiently decentralized, allowing the relevant tokens to be classified as commodities regulated by the CFTC. The legislation also requires the two agencies to collaborate in rulemaking and research on issues including NFTs and DeFi.



Furthermore, the legislation specifies that digital assets themselves are not securities, as they are sold as part of investment contracts.



The next step for this legislation is to be reviewed by the House Agriculture Committee, which includes providing an additional $120 million in funding for the CFTC. According to the legislation, the CFTC will gain new powers to regulate this asset class.



It is worth noting that due to the skepticism of Sherrod Brown, the chairperson of the banking industry in Ohio, the legislation is expected to face significant resistance in the Democratic-led Senate. (Bloomberg)