US FSC Chairman Pushes for Clear Regulations in Crypto and Stablecoin Sectors

Chairman of the House Financial Services Committee, Representative Patrick McHenry, has taken a significant step towards providing regulatory clarity in the digital asset ecosystem. In an announcement made recently, the committee is set to convene on July 26 to mark up a series of legislations, including H.R. 4763, the Financial Innovation and Technology for the 21st Century Act; H.R. 4766, the Clarity for Payment Stablecoins Act of 2023; and H.R. 1747, the Blockchain Regulatory Certainty Act, among others.

Of particular note is the markup for clarity regarding stablecoin payments, an initiative introduced by Representative McHenry himself. The goal of this legislation is to establish clear regulatory guidelines for the issuance of stablecoins intended for use in payment transactions.

The memorandum released on July 21 reveals that H.R. 4763 aims to create a digital asset market structure framework tailored to the unique characteristics of digital assets. On the other hand, H.R. 1747 seeks to spare blockchain developers from acquiring licenses as long as they do not engage in cryptocurrency activities.

Interestingly, the markup date comes shortly after the introduction of the Financial Innovation and Technology for the 21st Century Act. Chairman of the Subcommittee on Digital Assets, U.S. Representative French Hill, emphasized the importance of a functional regulatory framework in safeguarding investors from financial fraud. He also stated that such legislation would have prevented FTX, a prominent crypto exchange, from misappropriating billions of customer funds while ensuring robust consumer protections and clear guidelines for market participants.

Meanwhile, in a separate development, the U.S. Department of Justice (DoJ) has made a significant move to combat crypto-related crimes. The DoJ has decided to merge two of its teams, the Computer Crime and Intellectual Property Section (CCIPS) and the National Cryptocurrency Enforcement Team (NCET), into a larger structure with additional resources. This move will result in more than doubling the number of criminal division attorneys available to handle cases involving cryptocurrency crimes. In effect, any CCIPS attorney could potentially be assigned to work on an NCET case, reflecting the government’s increasing focus on addressing the challenges posed by cryptocurrency-related criminal activities.

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