US Introduces Bill for Crypto Market Regulation

The 21st Century Financial Innovation and Technology Act, a 200-page document recently published by Republicans in the US House of Representatives, requires the SEC and the CFTC to specify the definitions of “blockchain” and “digital asset” in the regulation of the digital asset industry.

Exemptions will also be provided for blockchain projects in terms of registration for distribution of securities, and companies introducing digital assets will be allowed to provide tokens up to $75 million over a period of 12 months, notwithstanding restrictions on sale to non-accredited investors.

Issuers will still need to note information with the SEC, including annual and semi-annual statements, until regulators classify the project as decentralized and allocate the token as a commodity.

Companies will be prohibited from offering more than 10% of the total asset supply to a single buyer, and the bill further details the prohibition of mixing of client and corporate funds.

President Patrick McHenry interjected that “This is a key moment for the US as a world leader in innovation and technology adoption,” adding that digital assets and blockchain technology “have the potential to revolutionize our financial system.”

The proposed document will be put to a vote next week.