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The Most Awaited Pro-Crypto Bill is Passed in the US: Check Highlights

Key Takeaways
  • The long-awaited 'Pro-Crypto Bill' has been approved by the US House of Representatives Agricultural Committees
  • The bill introduces a new perspective by classifying cryptocurrencies as both digital assets and commodities
  • The bill also establishes committees to oversee the development and regulation of digital assets under the SEC
28-Jul-2023 By: Anushka Saxena
The Most Awaited Pro

It has been long heard that everyone was hoping for the approval of Financial Innovation and Technology (FIT) for the 21st century. This has now come to action as the US  House of Representatives Agricultural Committees has passed the Pro-Crypto Bill. The main aim of this bill is to prepare a framework for digital assets, which was the need of an hour. 

It is the work of the House Agriculture and Financial Services Committees, and it was enacted as a result of cooperation between Republicans and Democrats who support cryptocurrency. The purpose of this legislation is to address regulatory loopholes, safeguard consumers, and maintain American technical and financial leadership.

The Agriculture Committee's approval comes a day after the Financial Services Committee's approval of the bill, establishing the framework for a more clear definition of the legalities of cryptocurrencies.

Highlights of the Pro-Crypto Bill

  • The pro-crypto bill addresses many issues that have previously caused worry among investors, companies, and regulators alike in order to establish a clear legal framework for the cryptocurrency industry. The introduction of rules for the issue and trade of cryptocurrencies is one of the bill's standout features; it provides this unexplored area with much-needed clarity.

  • The new laws will give cryptocurrencies greater credibility in a variety of economic operations by formally recognizing them as a legitimate form of payment. This action is anticipated to increase customer trust and promote greater use of digital assets in regular financial transactions.

  • US committees have tried to give it a new perspective by allowing commodity trading. Whereas, in Japan and Europe, digital assets were considered only as assets, and trading was not allowed.

  • This bill introduces digital assets to be used as means of payment or settlement, regulated by federal or state regulatory authority, which is not national currency or security issued by an Investment company.

  • The LabCFTCF and FinHub under SEC are the committees that will be established for overseeing the development and regulation of digital assets. 

Exemptions related to Digital Assets

  • The issuer will be eligible for exemption within 12 months if he has not sold digital assets of more than $75,000,000.

  • The purchaser will be eligible for exemption only if he does not own 10 % of the total unit of a single digital asset.

  • The same translation related to digital assets shall not be considered as an investment contract.

  • The purchaser can claim the exemption if the investor who is not an accredited investor has purchased a digital asset of not more than 10% of the person's annual income or joint income; or not more than 10% of the person's net worth or joint net worth with person spouse or spouse equivalent.

The passing of the Pro-Crypto Bill by the US House Agricultural Committees is a positive step for the cryptocurrency industry. Establishing a legal framework for digital assets. This will provide clarity and credibility, promoting wider adoption and fostering innovation while safeguarding consumers and maintaining America's technological and financial leadership. If US approves this bill, then there will be proper regulation for digital assets, limiting the scope of SEC, while expanding the horizon of CFTC. 

Also Read: Binance Lawsuit Threatens Crypto Giant: Big Trouble Ahead

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