US lawmakers to convene for amarkup on July 26

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US lawmakers to convene for amarkup on July 26

US lawmakers will convene on July 26 for a'markup' 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 will provide guidance for determining whether a digital asset is a security measure, including regulatory requirements for exchanges and brokers, and the creation of a joint advisory commission. On July 20th, the bill was reintroduced.

Lawmakers also will consider a bill introduced in February by Patrick McHenry, chair 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 meeting will take place less than two weeks after a US court made a significant ruling in the ongoing dispute between the Securities and Exchange Commission and Ripple Inc. On July 13 District Judge Analisa Torres denied most of the SEC's claims against Ripple, alleging that Ripple distributed nearly $1.4B worth of 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 meeting was the next 'big moment' for U.S. digital asset regulations following last week's ruling in the dispute between the SEC 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.

The court's decision 'underscores the need for Congress to provide clear rules of the road for the digital asset ecosystem,' he said.

Coinlist co-founder Andy Bromberg, speaking at The Defiant, said that the relationship between digital assets and securities should be treated like a binary assessment. The CEO of Eco App, a consumer-fintech product created on the Eco payments protocol, is Bromberg.

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

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

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.