On Thursday, the House approved a new law intended to outline regulations for the cryptocurrency industry. This decision came after GOP leaders managed to suppress dissenting factions during a recent meeting, which had left the legislation in a sort of limbo.
The Digital Asset Market Clarity Act passed with a vote of 294-134, garnering support from 78 House Democrats who joined all Republicans in backing the measure.
This vote wrapped up what was a tumultuous week in the House, often referred to as Crypto Week, during which GOP leaders aimed to smoothly advance a set of bills related to digital assets.
However, a faction of hardline Republicans staged a rebellion on Tuesday, urging procedural votes and requesting intervention from former President Trump.
The original agreement included language borrowed from the Anti-CBDC Surveillance National Act, which aims to prohibit the Federal Reserve from issuing central bank digital currency (CBDC).
After extensive discussions and the longest recorded vote in the House, leadership ultimately decided to integrate a counter-CBDC provision into the National Defense Authorization Act (NDAA), which increases the likelihood of it reaching Trump’s desk.
Most of the Republicans who had initially opposed the bill eventually switched their votes to “yes,” allowing the House to maintain control over the debate without pausing the session.
Known as the Crypto Market Structure Bill or the Clarity Act, this legislation seeks to establish firm guidelines for the crypto market, delineating the oversight roles of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
The crypto industry has consistently pushed for clearer legislation to specify whether a digital asset should be classified as a security or a commodity, which in turn determines the applicable regulatory body.
This has become a pressing concern for the Biden administration. Former SEC Chair Gary Gensler has taken significant enforcement actions against crypto firms, claiming they operated without clear regulations and attempting to govern through enforcement.
The House had previously passed an earlier version of the market structure bill, known as the Financial Innovation and Technology Act, in May of last year.
However, the Senate did not take action on it. Now, attention turns back to the Senate as they prepare to release their own discussion draft concerning crypto market structure.
Additionally, the House passed the Genius Act, which sets guidelines for national innovation under the US Stablecoins Act, establishing a regulatory framework for stablecoins in payment systems. This bill, which the Senate exempted last month, is now poised to be sent to Trump’s desk following its approval in the House by a tally of 308-122.
