The Crypto Roundup: 24 July 2023 | CryptoCompare.com

While the unveiling of a highly anticipated bill on digital assets by U.S. legislators stoked hopes of a more favorable regulatory environment for the cryptocurrency sector, some industry experts have expressed concerns about the bill’s vague language.

One provision on the decentralized finance (DeFi) space, for example, is believed to not be enough to curb the SEC’s aggressive regulatory stance on crypto. Billy Sebell, executive director of the XDC Foundation, voiced concerns about the potential of the bill to create more uncertainty.

Moreover, Gabriel Shapiro, general counsel for Delphi Labs, highlighted on Twitter that the bill still leaves many assets used in DeFi exposed to the risk of being classified as securities by the SEC.

The bill, called  “the Financial Innovation and Technology for the 21st Century Act,” mandates the creation of clear definitions for “blockchain” and “digital asset” within existing financial law, and for the creation of rules specifically for crypto exchanges.

The lengthy 212-page bill includes fresh definitions of digital assets, exemptions, and protocols for registering cryptocurrency exchanges with both the SEC and the Commodities Futures Trading Commission (CFTC).

The bill sets a precedent by separating tokens from the manner in which they are sold, stating that a digital token sold as part of an investment contract does not instantly classify as a security. This modification seems to align with the recent ruling by a federal judge favoring Ripple Labs.

The proposed legislation has faced opposition from House Agriculture Committee Democrats who view it as too favorable towards the crypto industry.

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• Source: https://www.cryptocompare.com/email-updates/daily/2023/jul/24/