The US House of Representatives has passed the National Defense Authorization Act, which includes a crypto provision, and it now awaits Senate approval.
A provision for cryptocurrencies has been included by the House of Representatives in the annual 2021 defense bill. Termed the National Defense Authorization Act, it contains guidelines on policy, as well as on spending for the military. This year, a provision has also been included that’s from the Eliminate Barriers to Innovate Act.
The defense bill is seen as a bill that must be passed, and as a result, receives support from both parties. By adding a provision for cryptocurrencies into the fold, the House of Representatives could be signaling that crypto regulation is on the horizon.
Senate Yet to Vote
The Senate has not yet voted on its version of the bill. That is a requirement before the Senate and the House of Representatives can settle on a final version of the bill. This bill will then be voted on by every member of Congress.
The provision for cryptocurrency was added to this year’s defense bill by representative Patrick McHenry. His aim is to improve national competitiveness by regulating cryptocurrencies. As per the bill, two government bodies – the SEC and the CFTC will be responsible for regulating cryptocurrency. They will need to put to paper which agency will regulate which part of the cryptocurrency market.
What Happens if the Bill is Passed?
Should the bill be passed, Congress will be responsible for creating a working group. This group, made up of representatives from the SEC and the CFTC, will be formed within ninety days of the bill passing.
Within the next year, the representatives will analyze the current regulations on both primary as well as secondary markets. They will also have to file a report that detail how the current regulations impact the nation’s competitiveness.