U.S. lawmakers to hold 'Amarkup' on July 26

U.S. lawmakers to hold 'Amarkup' on July 26

U.S. lawmakers are expected to hold a'markup' on July 26 to discuss two bills related to digital assets and stablecoins.

The House Financial Services Committee and the House Committee on Agriculture will review and alter the Financial Innovation and Technology for the 21st century Act next week.

The bill would provide guidance for determining whether a digital asset is a secure, registration requirements for exchanges and brokers, and the creation of a joint advisory commission. The bill was enacted on July 20.

Lawmakers also are considering a bill introduced in February by Patrick McHenry, chairman of the Financial Services Committee, outlining regulatory recommendations for stablecoins and stablecoin issuers.

If approved, the bills will move to the U.S. House of Representatives.

The planned meeting will happen less than two weeks after a US court delivered a key ruling in the ongoing dispute between the SEC and Ripple Inc. On July 13th, District Judge Analisa Torres denied the SEC's claims that Ripple distributed nearly $1.4 billion worth of unregistered securities to investors between 2013 and 2020 in the form of its XRP token.

The Defiant said the congressional meeting is the next 'big moment' for U.S. digital asset regulations following last week's ruling in the dispute between the U.S. Securities and Exchange Commission and Ripple.

Whitehouse-Levine commended the judge, Analisa Torres, for advancing that the 1946 Howey Test, a framework used to determine if assets are securities, does not effectively account for digital assets.

''T going to capture crypto tokens writ large,'' he said.

In a statement, McHenry said the court's decision 'underscores the need for Congress to provide clear rules of the road for the digital asset ecosystem'.

Coinlist co-founder Andy Bromberg said the relationship between digital assets and securities should be treated like a binary assessment. Bromberg, who is currently president of Eco App, is a consumer finance product built on the Eco payments protocol.

Bill Hughes, Consensys' director of global regulatory matters, said the decision poses a challenge to the SEC's regulatory crusade against crypto by defining digital assets as their method of distribution.

It's really important, for the SEC to achieve its policy objectives, for these tokens themselves to be the regulated object, he said.

Orlando Cosme, a lawyer for crypto firms, highlighted that many of the operations associated with decentralized organizations lay in gray areas of law, such as DAOs paying salaries in the form of native tokens.

I've been talking in a lot of crypto legal circles about [how] when you really get into the weeds, things get weird, he said.