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

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

U.S. lawmakers will 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 amendment the Financial Innovation and Technology Act in the 21st century.

A bill would provide guidance for determining whether a digital asset is a security, certification requirements for exchanges and brokers, and the creation of a joint advisory commission. The bill's new version was released on July 20.

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

If approved, the bills will go to the House of Representatives.

The scheduled meeting will take place less than two weeks after a U.S. court issued a significant ruling in the ongoing dispute between the SEC and Ripple Inc. On July 13 District Judge Analisa Torres denied the SEC's claims that Ripple distributed nearly $1.4 billion in unregistered securities to investors between 2013 and 2020 in the form of its XRP token.

Miller Whitehouse-Levine, the CEO of web3 advocacy group DeFi Education Fund, said the congressional meeting was 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 whether assets are securities, does not effectively account for digital assets.

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

In a statement on Thursday, Ms. 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. The CEO of Eco App, a consumer-fintech product that is built on the Eco payments protocol, is Bromberg.

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

It is 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, said that many of the operations associated with decentralized organizations sit 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 [how] when you really get into the weeds, things get weird, he said.