Key House Committee Advances Financial Innovation and Technology for the 21st Century Act
Subcommittee Hears Testimony from Cryptocurrency Company Executives
House Votes 279-136 to Approve Bill
WASHINGTON, July 26 (Reuters) - A key congressional committee on Wednesday advanced a bill that would create a new framework for regulating the cryptocurrency industry. The Financial Innovation and Technology for the 21st Century Act, or the "Stablecoin Act," was approved by the House Financial Services Committee by a vote of 279-136.
The bill would establish a new regulatory regime for stablecoins, which are cryptocurrencies that are pegged to the value of a fiat currency such as the U.S. dollar. Stablecoins have become increasingly popular in recent years, but their regulatory status has been unclear.
The Stablecoin Act would also create a new self-regulatory organization (SRO) for the cryptocurrency industry. The SRO would be responsible for setting standards for the industry and for enforcing those standards.
The bill's passage is a major victory for the cryptocurrency industry, which has been lobbying for clear regulatory guidelines. The bill now heads to the full House of Representatives for consideration.
Cryptocurrency Company Executives Testify Before Subcommittee
In addition to advancing the Stablecoin Act, the House Financial Services Committee also held a hearing on Wednesday to hear testimony from the chief executives of six cryptocurrency companies. The executives testified for nearly five hours, answering questions about the risks and benefits of cryptocurrencies and the need for regulation.
The executives generally agreed that the cryptocurrency industry needs to be regulated, but they differed on the specific approach that should be taken. Some executives called for a light-touch regulatory framework that would allow the industry to continue to innovate, while others called for a more stringent approach that would protect consumers and investors.
The hearing was a sign that Congress is taking the cryptocurrency industry seriously and is working to develop a regulatory framework that will protect consumers and investors while allowing the industry to continue to grow.
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