The US House of Representatives has passed a bill seeking to clarify the regulation round, and better define, cryptocurrencies.
HR 1602 was sponsored by Republican Patrick McHenry and is titled the Eliminate Barriers to Innovation Act.
The resolution enjoys bipartisan support and is intended to overcome obstacles that block the crypto industry from achieving a clearer regulatory status.
Originally introduced in March, the bill seeks to create an actionable guide as to what roles certain regulators play in relation to the crypto industry.
It specifically names the US Securities and Exchange Commission and the Commodity Futures Trading Commission and attempts to define their involvement within the sector.
Another important part of the bill is around whether tokens are securities or commodities; a debate that has come to haunt companies such as Ripple Labs and has been stifling innovation.
McHenry presented the bill adding: “HR 1602 requires the Securities and Exchange Commission and the Commodity Futures Trading Commission to establish a working group focused on digital assets. This is the first step in opening up the dialogue between our regulators and market participants and move to needed clarity.”
Successful passage of the House of Representatives' floor means that the bill will move up, with Congress having 90 days to create a working group involving all named parties, including both regulators and industry experts from the private sector.
Should it succeed, the bill will bring more clarity to the regulatory framework and serve as a guideline to companies looking to issue tokens and leverage them in the highly promising US crypto market.