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The House Financial Services Committee (HFSC) approved a number of proposals related to digital asset regulation last month, any of which could become the first piece of crypto-specific legislation signed into U.S. federal law.
Here is a summary of the differences between the most important bills and what each could mean for the broader cryptocurrency industry.
4 Crypto Bills: A Summary
One of the most high-profile bills to receive approval was the Financial Innovation and Technology for the 21st Century Act (also known as FIT 21), which garnered bipartisan support (all Republicans plus six Democrats) from the HFSC last week.
The bill aims to clarify the jurisdictional boundaries between the Commodities and Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) regarding digital assets.
While many Democrats viewed the bill as favorable to the industry, others believed it represented a significant improvement over the status quo, helping to “create clarity where none exists.”
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The following day, the committee considered the Clarity for Payment Stablecoins Act of 2023, which would establish clear rules for stablecoin issuance and outline the Federal Reserve’s authority over the sector.
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Democrats opposed the bill, describing it as “deeply flawed” and arguing it was rushed by Chairman Patrick McHenry. The White House and Treasury Department also expressed disapproval. Nevertheless, with Republican support and that of three Democrats, the bill also received clearance.
The committee also passed the Blockchain Regulatory Certainty Act, which would ensure that blockchain service providers that do not keep custody of client assets are not classified as money services businesses under the law.
This would theoretically address issues within President Biden’s 2021 Infrastructure bill, which imposed untenable transaction reporting requirements on “digital asset broker” entities—a term that could include miners, nodes, and validators.
Finally, Congress approved the Keep Your Coins Act of 2023, which would simply guarantee American citizens the right to take custody of their own cryptocurrency and to use their assets to purchase goods and services as they see fit.
The Lummis-Gillibrand Bill
In the Senate, Cynthia Lummis and Kirsten Gillibrand have collaborated to draft legislation with a similar purpose to FIT 21.
While drawing a clear distinction between digital securities and commodities, the bill would also empower the SEC to be more aggressive in pursuing consumer protections. New consumer protections would include requirements for crypto companies to prove their reserves and clearly disclose their risks.
Unlike a version of the bill presented last year, the senators stated that their new version would not grant the CFTC overbroad authority.
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