The US House of Representatives has recently passed a crypto-related bill that was introduced by Patrick McHenry, a pro-bitcoin Congressman asking the SEC and CFTC to establish a digital assets-targeted working group. On Tuesday, several bipartisan bills were passed by the US House of Representatives including the H.R. 1602, which was introduced by Patrick McHenry.
Crypto Bill Ordering SEC and CFTC Passed by US House
Patrick McHenry is the Republican leader of the House Financial Services Committee and a pro-bitcoin Congressman.
H.R. 1602 entitled “Eliminate Barriers to Innovation Act of 2021” and is expected to be establishing a digital asset working group to make sure of the alliance between the private sector and the regulators to foster innovation.
Patrick released a statement explaining the bill and said:
“[This bill] requires the Securities and Exchange Commission and the Commodity Futures Trading Commission to establish a working group focused on digital assets. This is the first step in opening up the dialogue between our regulators and market participants and move to needed clarity.”
As mentioned in the bill, the working group shall be established no later than 90 days after the date of its passing.
In addition to this, the bill requires that at least one representative from the fintech companies that provide the users with digital asset products and services should be included in the members of the group.
Along with this, the representatives should be from the companies that are regulated by SEC or CFTC, small fintech businesses, institutions involved in academic research or advocacy, and institutions that assist in the investments in businesses that are undeserved throughout history.
Submission of Report After Enactment of Bill
It was also mentioned that the working group shall submit a report within one year after the passing of the bill to the Securities and Exchange Commission, the CFTC, and the related committees.
Moreover, the report must contain authoritative analysis and recommendations that are in relation to the laws and the authorizations under the jurisdiction of the SEC or the CFTC.
As noted in the bill, the recommendations are:
“For the creation, maintenance, and improvement of primary and secondary markets in digital assets, including for improving the fairness, orderliness, integrity, efficiency, transparency, availability, and efficacy of such markets.”
Also, it should be covering the:
“Standards concerning custody, private key management, cybersecurity, and business continuity relating to digital asset intermediaries.”