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US House of Representatives to Vote on Decentralization Bill
The US House of Representatives is set to vote on the Decentralization Bill, officially known as “The Financial Innovation and Technology for the 21st Century Act” (FIT21) this week. This legislation aims to bring clarity and streamline cryptocurrency regulation for traders and investors in the US.
Key Points of the US Decentralization Bill
- The bill, also known as HR 4763, will be voted on in the House this week, marking a significant step towards establishing a regulatory framework for digital assets in the US.
- It defines decentralization of the blockchain as no issuer or affiliated person having control of more than 20% of the digital asset or its voting power.
- The regulatory responsibilities of the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) in regulating crypto transactions are clearly outlined in the bill.
Regulatory Framework of the FIT21
The FIT21 aims to regulate digital assets right from their inception. It distinguishes between “restricted digital assets” subject to SEC rules and “digital commodities” under CFTC jurisdiction based on factors like decentralization and functionality of the associated blockchain system.
Support for the Decentralization Bill
The Blockchain Association, along with prominent crypto firms like Ripple, Kraken, and Circle, has urged a full House floor vote on the US Decentralization Bill. They emphasize the need for regulatory clarity, innovation, and protection for users and consumers in the blockchain industry.
Impact of the FIT21 Act
If passed, the FIT21 Act will provide much-needed clarity to crypto regulations in the US. It will establish a certification process for blockchain systems to be treated as decentralized entities, exempt from SEC regulation, and subject to CFTC-style conduct standards.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
