Patrick McHenry, a prominent Republican legislator in the US House of Representatives, has introduced a bill supporting cryptocurrency initiatives. The bill will make it easier for crypto startups to operate without violating securities law.
McHenry announced the bill ahead of a committee hearing with Securities and Exchange Commission (SEC) Chairman Gary Gensler. It is stated that while the bill protects investors, it will also support new technologies and innovation by acting as a “safe haven” for crypto money projects.
Republican leader McHenry said, “The United States should be a global leader in digital assets, not a bystander. Unfortunately, our current regulatory framework is pushing this technology and the work being done in this industry abroad. Building on the great work of SEC member Hester Perice, this bill will help provide digital asset projects with the necessary legal clarity.” says.
The Blockchain Association in the USA also announced that they support McHenry’s bill. The president of the association, Kristin Smith, said that the draft law will provide legal clarity for cryptocurrencies, while the existing uncertainty has hindered innovation for years. “Innovative entrepreneurs and projects are migrating from the US to jurisdictions with a clear regulatory framework due to regulatory uncertainties,” Smith said. he said.
The bill envisions giving crypto startups three years to get regulatory approval or meet requirements to prove that they are operating in a completely decentralized manner. There are also provisions in the bill, such as requiring startups to share information about transactions and secondary platforms where tokens are traded. On the side of protecting investors, projects that will sell tokens are also required to issue warnings that buying tokens poses a high degree of risk and may result in loss of money.