This Tuesday, the United States House of Representatives passed a myriad of bipartisan legislation, which notably includes Rep. Patrick McHenry’s Eliminate Barriers to Innovation Act or H.R. 1602 that aims to provide more regulatory clarity in the crypto space.
To clarify, the newly-passed H.R. 1602 seeks to develop a digital asset working group that includes representatives from the country’s top regulators, namely the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC).
As per the press release published by the House Financial Services Committee, the purpose of the digital asset group is to ensure the cooperation between the private sector and the regulators to help bolster innovation within the space while also laying a more precise framework of regulations. Notably, the newly passed bill implores the Congress to develop the aforementioned working group in the next 90 days.
After the group’s constitution, it would be given a year to issue a particular report that comprehensively analyzes the current state of crypto regulations. The group’s work focuses on matters such as cybersecurity, private key management, crypto custody, and further investor protection.
McHenry commented on this development by stating that the passing of the digital asset innovation act is the first step to a far more comprehensible regulatory space where market participants and regulators are in open dialogue with one another.