U.S. Legislation Set for July to Determine Whether Crypto is a Security or Commodity

To shed more light on the status of cryptocurrencies and stablecoins, the U.S. House committee in charge of finance will debate and vote next month.

According to The Block, preparations are in high gear for the U.S. House Finance Services Committee to undertake a crucial vote to determine whether digital assets are securities or commodities. Furthermore, the stablecoin framework will be discussed.

Regulatory gaps and clarity have been burning issues in the cryptocurrency space. For instance, the United States Securities and Exchange Commission (SEC) has been cracking the whip on crypto exchanges acting as clearinghouses and unregistered securities, with Coinbase and Binance being on the receiving end.

Therefore, the House committee debate will deliberate on the way forward and offer a clear picture of the transition of digital assets from securities to commodities, according to the chair Patrick McHenry.

This development is a welcome call for the crypto market because commodities face less stringent regulations and reporting. For the bill to become law, it requires the backing of Democratic senators, as well as President Joe Biden’s signature.

Delving Deeper into Stablecoins

The other bill that the McHenry-led committee will debate touches on stablecoins as they continue to gain momentum in the crypto space.

Stablecoins are digital assets whose value is pegged to a financial instrument, commodity, or fiat currency like the US. dollar. The common ones include Tether (USDT) and USD Coin (USDC).

Therefore, the July vote will offer a clear picture of what stablecoins have to offer.

Meanwhile, Singapore has collaborated with leading financial players, such as JPMorgan, Amazon, and IMF, to comprehend stablecoin, tokenization, and CBDC standards, The Crypto Basic reported.