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GOP Rep introduces bill that will protect cryptocurrency and its investors

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Recently, House Representative Patrick McHenry, the Ranking Republican on the House Financial Services Committee, introduced a new bill that will ensure a “safe harbor” for digital asset innovations such as cryptocurrencies and non-fungible tokens (NFT’s). The bill aims to embrace the latest in financial technology while protecting its investors.

“The U.S. should be a global leader, not a global follower, when it comes to digital assets. Unfortunately, our current regulatory framework threatens to push this technology – and the jobs created by this rapidly growing industry – overseas. My bill, which builds on the great work of SEC Commissioner Hester Peirce, will help provide the necessary legal certainty to digital asset projects when they launch,” McHenry said in his official statement.

America is known for its efforts in science technology that helped thrust human civilization into the era of modernity. Back in the 90’s we supported the development of this new technology called the “internet” which was considered a passing fad back then. What used to be doubted and dubbed as a bubble that was destined to burst, is now a vital part of our society.

The same can be said about blockchain technology and digital forms of currencies and financial instruments. Still at its nascent stage, the crypto innovation is mocked by some liberals, while communist regimes like China have shown their utmost hatred for bitcoin by banning its mining in the country.

Experts in the field of cryptocurrency and blockchain were more than happy to hear about McHenry’s proposal, which they believe will help shed more light on digital financial innovation, while ensuring the security of the American people who wish to invest their hard-earned money.

“This sound legislation, based on SEC Commissioner Hester Peirce’s Safe Harbor 2.0, seeks to clarify the opaque U.S. securities laws as they apply to cryptocurrencies,” Kristin Smith, Executive Director, the Blockchain Association, said in a statement. 

“This regulatory uncertainty has been stifling innovation for years and thereby resulting in an exodus of innovators from the U.S. to jurisdictions with a clear regulatory framework. We commend Rep. McHenry’s efforts to change this sentiment and make a clear safe harbor process for innovators to work with regulators to build the future of finance and protect consumers,” Smith added.

McHenry also rebuked Securities and Exchange Commission (SEC) Chair Gary Gensler, for his contradicting statements at the House Financial Services Committee hearing yesterday.

“You implied that many digital asset exchanges are unregistered securities exchanges, and even threatened one digital asset exchange by name. So, which is it? Does the SEC want more legislative authority, or is it about to unleash a regulatory tsunami under existing laws?,” McHenry said.

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