Bringing clarity to cryptocurrency

By Rep. French Hill and Rep. Dusty Johnson. (Washington Times). May 21, 2024.

As the FTX collapse demonstrated in 2022, issuing and trading digital assets—including cryptocurrencies—need clear rules of the road.

The regulatory gaps in the digital asset market must be filled by legislation, not by independent agencies ruling by enforcement. If Congress does not take action, Securities and Exchange Commission (SEC) Chairman Gary Gensler will continue to exercise broad authority over all digital assets.

That’s why we collaborated with House Financial Services Committee Chairman Rep. Patrick McHenry (R-NC) and House Agriculture Committee Chairman G.T. Thompson (R-PA) to craft our Financial Innovation and Technology for the 21st Century Act (FIT21), which crafts a “fit for purpose” regulatory framework for digital assets that protects consumers and investors while keeping innovation in the United States.

This type of committee collaboration is unprecedented and may be the most substantial piece of digital asset legislation in Congress’s history. FIT21 directs the SEC and Commodity Futures Trading Commission (CFTC), along with the bank supervisors, on how to classify cryptocurrencies and other digital assets as securities or commodities. 

Since our two committees passed FIT21 last summer, this bill has incorporated our members’ bipartisan priorities. We believe it fully responds to the Financial Stability Oversight Council (FSOC) and the President’s Executive Order on Ensuring Responsible Development of Digital Assets.

Read the whole piece here: Washington Times.