The U.S. House of Representatives has taken a significant step towards addressing the regulatory uncertainty surrounding the digital assets industry by introducing a groundbreaking bill.
The bill titled the “Financial Innovation and Technology for the 21st Century Act.” is aimed at establishing a regulatory system for digital assets, to be overseen by the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC).
The bill covers various aspects related to the definition of digital assets, exemptions, registration of intermediaries, and improvements in innovation and technology. The bill outlines specific definitions and conditions for decentralized networks, blockchain systems, digital assets, and decentralized governance systems.
A major highlight of the bill is the establishment of a clear pathway for blockchain systems to attain certification as decentralized networks. The Securities and Exchange Commission (SEC) would have the authority to scrutinize claims made by token issuers regarding their projects’ adherence to the decentralization standard outlined in the act.
Companies aspiring to register as broker-dealers or alternative trading systems to facilitate digital asset intermediation would be required to undergo inspection by the SEC, ensuring adherence to regulatory standards and investor protection.
To enhance transparency and protect investors, digital asset issuers would be obligated to comply with a new disclosure regime. This requirement entails furnishing detailed information about their project’s economic model, development plan, and potential risk factors.
As the bill progresses through legislative channels, stakeholders in the digital assets space eagerly await its potential implementation, hopeful that it will bring much-needed certainty and clarity to the industry’s landscape.
Importantly, token issuers must also disclose their project’s source code, a move aimed at promoting transparency and accountability.
As the bill progresses through legislative channels, stakeholders in the digital assets space eagerly await its potential implementation, hopeful that it will bring much-needed certainty and clarity to the industry’s landscape.
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