Arkansas Lawmaker Takes Action to Establish Crypto Regulations

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U.S. Rep. French Hill, R-Little Rock, is ready to tackle the issue of cryptocurrency-related regulations in the U.S. House of Representatives. On Friday, the House Financial Services and Agriculture Committees put forward a legislative discussion draft to address the uncertainty surrounding digital assets.

Hill, who serves as the House Financial Services Committee’s vice chair and heads its Subcommittee on Digital Assets, Financial Technology and Inclusion, stated that such legislation is necessary in order to protect U.S. consumers and investors and maintain America’s role as a global leader in finance, technology, and innovation. He explained that the proposed framework would establish regulations for digital assets that are based on the principle of “same risk, same regulation.”

Various state and federal agencies are already responsible for regulating cryptocurrencies, but Carol Rose Goforth, a distinguished professor of law at the University of Arkansas, noted that existing regulations do not cover all assets, allowing some investors to avoid regulatory authority. The European Union has taken action to regulate platforms and monitor transactions, but Goforth said that the situation can still be difficult for companies who are trying to comply with the rules.

Events such as the bankruptcy of cryptocurrency exchange FTX and the collapse of the Luna digital currency have added to the urgency of the matter. Hill and Massachusetts Democratic Rep. Jake Auchincloss even proposed legislation to prevent the Federal Reserve from implementing a central bank digital currency, citing the potential national security risks.

The House Agriculture Committee and its Senate counterpart will handle matters involving commodities, including cryptocurrencies, and related transactions. The House Financial Services Committee is expected to consider cryptoasset legislation this month, with the goal of sending measures to the full House in July.

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