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July 28, 2023
Dear John,
Bringing Clarity to Cryptocurrencies
Cryptocurrencies are confusing. Is it real money? Is it digital money? Is it worth the investment? Is it risky?
Many people see a great advantage to investing in the digital asset market. However, the past few years have been riddled with lawsuits, bankruptcies, and complications for digital asset developers and investors. Because of a lack of regulatory framework, digital asset companies encounter a higher risk of regulation-by-enforcement by the Securities and Exchange Commission (SEC). A recent District Court decision in the Ripple Labs case held that Ripple’s token, XRP, is not a security in and of itself, highlighting the fact that legislation from Congress is past due.
Every market expert I have spoken with or heard testify in the House Ag Committee says this regulatory gap needs solved so the market can innovate and thrive with certainty. Earlier this month, the House Ag Committee and House Financial Services Committee introduced a historic bill to do just that. The Financial Innovation and Technological (FIT) for the 21st Century Act is the product of months of collaboration between the two committees, bipartisan joint committee hearings, and conversations with experts.
This week, it passed with bipartisan support out of both committees. This type of collaboration is unprecedented and could be the most substantial piece of digital asset legislation in the history of Congress.
The European Union, Britain, and authoritarian countries like China have established regulatory frameworks and protections for developers which has led many digital asset companies to move overseas. I don’t own any cryptocurrency, but if we want to remain the global leader in technology and financial innovation, we have to be engaged in the area. As the Chairman of the Subcommittee on Digital Assets, I was proud to secure committee passage on this important legislation.
Both our committees will push to get this legislation on the House floor for a vote this year so we can bring clarity to cryptocurrency.
View my remarks from the Ag Committee hearing here.
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