GOP Chair: Crypto Offered As Investment Contract Does Not Become "Securities"
07/27/2023 01:11
GOP chair mentioned that their bill linked to crypto assets focuses on two vital points i.e. decentralization and functionality
Crypto News: The U.S. House Financial Services Committee on Wednesday held a crucial markup of legislation in order to provide clear rules for the digital asset industry in the country. The Financial Services Committee chair addressed the digital asset market structure and Howey Test in this opening remarks.
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GOP Chair Address Crypto “Securities” Issue
Patrick McHenry, the House Financial Services Committee chair stated that the entire crypto market structure legislation accepts a key issue in the market i.e. digital assets being treated as securities.
Digital assets that are not inherently securities may be offered as part of an investment contract but that does not make them securities, said Patrick McHenry.
GOP chair mentioned that their bill linked to crypto assets focuses on two vital points i.e. decentralization and functionality in order to explain how Howey Test applies to digital assets. He added this will help the authorities ahead and this is also the “crux of the FIT of 21st Century Act.”
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The FIT for the 21st Century Act led by the House Financial Services Committee is projected as an historic first step in the direction of gaining legal clarity for digital assets.
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