Financial Innovation and Technology for the 21st Century Act

Bill: 118-hr-4763
Sponsor: Rep. Thompson, Glenn [R-PA-15]
Introduced: 2023-07-20 in the House
Policy area: Finance and Financial Sector
Subjects: Administrative law and regulatory procedures
Advanced technology and technological innovations
Commodities markets
Commodity Futures Trading Commission
Computers and information technology
Currency
Digital media
Licensing and registrations
Securities
Securities and Exchange Commission (SEC)

Summary:
action_date: 2023-07-20
text: 

Financial Innovation and Technology for the 21st Century Act 

 
This bill establishes a regulatory framework for digital assets. 
 
The Commodity Futures Trading Commission (CFTC) must regulate a digital asset as a commodity if the blockchain, or digital ledger, on which it runs is functional and decentralized. The bill classifies a blockchain as decentralized if, among other requirements, no person has unilateral authority to control the blockchain or its usage, and no issuer or affiliated person has control of 20% or more of the digital asset or the voting power of the digital asset. In addition, the bill provides the CFTC with exclusive regulatory authority over cash or spot markets for digital commodities.
 
 The Securities and Exchange Commission (SEC) must regulate a digital asset as a security if its associated blockchain is functional but not decentralized. However, the bill establishes certain exceptions to SEC regulation for digital assets that limit annual sales, restrict nonaccredited investor access, and satisfy disclosure and compliance requirements. The bill also sets forth requirements for primary and secondary market transactions. 
 
The CFTC and SEC must jointly issue rules to define terms and exempt dually registered exchanges from duplicative rules. 
 
The bill excludes permitted stablecoins from CFTC and SEC regulation, except regarding anti-fraud authority and specified transactions on registered entities.

action_date: 2024-05-06
text: 

Financial Innovation and Technology for the 21st Century Act 

This bill establishes a regulatory framework for digital assets.

The Commodity Futures Trading Commission (CFTC) must regulate a digital asset as a commodity if the blockchain, or digital ledger, on which it runs is functional and decentralized. The bill classifies a blockchain as decentralized if, among other requirements, no person has unilateral authority to control the blockchain or its usage, and no issuer or affiliated person has control of 20% or more of the digital asset or the voting power of the digital asset. In addition, the bill provides the CFTC with exclusive regulatory authority over cash or spot markets for digital commodities.

The Securities and Exchange Commission (SEC) must regulate a digital asset as a security if its associated blockchain is functional but not decentralized. However, the bill establishes certain exceptions to SEC regulation for digital assets that limit annual sales, restrict nonaccredited investor access, and satisfy disclosure and compliance requirements. The bill also sets forth requirements for primary and secondary market transactions.

The CFTC and SEC must jointly issue rules to define terms and exempt dually registered exchanges from duplicative rules.

 
 

Legislative actions:
action_date: 2024-09-09
text: Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
action_date: 2024-05-22
text: Motion to reconsider laid on the table Agreed to without objection.
action_date: 2024-05-22
text: On passage Passed by recorded vote: 279 - 136 (Roll no. 226). (text: CR H3432-3455)
action_date: 2024-05-22
text: Passed/agreed to in House: On passage Passed by recorded vote: 279 - 136 (Roll no. 226). (text: CR H3432-3455)
action_date: 2024-05-22
text: The House adopted the amendments en gros as agreed to by the Committee of the Whole House on the state of the Union.
action_date: 2024-05-22
text: The previous question was ordered pursuant to the rule.
action_date: 2024-05-22
text: The House rose from the Committee of the Whole House on the state of the Union to report H.R. 4763.
action_date: 2024-05-22
text: POSTPONED PROCEEDINGS - At the conclusion of debate on the Perry amendment No. 4, the Chair put the question on agreeing to the amendment and by voice vote, announced that the ayes prevailed. Ms. Waters demanded a recorded vote and the Chair postponed further proceedings until a time to be announced.
action_date: 2024-05-22
text: DEBATE - Pursuant to the provisions of H. Res. 1243, the Committee of the Whole proceeded with 10 minutes of debate on the Perry amendment No. 4.
action_date: 2024-05-22
text: POSTPONED PROCEEDINGS - At the conclusion of debate on the Norman amendment No. 3, the Chair put the question on agreeing to the amendment and by voice vote, announced that the ayes prevailed. Ms. Waters demanded a recorded vote and the Chair postponed further proceedings until a time to be announced.
action_date: 2024-05-22
text: DEBATE - Pursuant to the provisions of H. Res. 1243, the Committee of the Whole proceeded with 10 minutes of debate on the Norman amendment No. 3.
action_date: 2024-05-22
text: DEBATE - Pursuant to the provisions of H. Res. 1243, the Committee of the Whole proceeded with 10 minutes of debate on the Pettersen amendment No. 2.
action_date: 2024-05-22
text: POSTPONED PROCEEDINGS - At the conclusion of debate on the Casar amendment No. 1, the Chair put the question on agreeing to the amendment and by voice vote, announced that the noes prevailed. Mr. Casar demanded a recorded vote and the Chair postponed further proceedings until a time to be announced.
action_date: 2024-05-22
text: DEBATE - Pursuant to the provisions of H. Res. 1243, the Committee of the Whole proceeded with 10 minutes of debate on the Casar amendment No. 1.
action_date: 2024-05-22
text: GENERAL DEBATE - The Committee of the Whole proceeded with one hour of general debate on H.R. 4763.
action_date: 2024-05-22
text: The Speaker designated the Honorable Michael Guest to act as Chairman of the Committee.
action_date: 2024-05-22
text: House resolved itself into the Committee of the Whole House on the state of the Union pursuant to H. Res. 1243 and Rule XVIII.
action_date: 2024-05-22
text: Rule provides for consideration of H.R. 4763, H.R. 5403 and H.R. 192. The resolution provides for one hour of debate on each bill. H.R. 4763 and H.R. 5403 are considered under a structured rule and H.R. 192 is considered under a closed rule. The resolution provides for one motion to recommit on each bill.
action_date: 2024-05-22
text: Considered under the provisions of rule H. Res. 1243. (consideration: H3419–3463)
action_date: 2024-05-21
text: Rules Committee Resolution H. Res. 1243 Reported to House. Rule provides for consideration of H.R. 4763, H.R. 5403 and H.R. 192. The resolution provides for one hour of debate on each bill. H.R. 4763 and H.R. 5403 are considered under a structured rule and H.R. 192 is considered under a closed rule. The resolution provides for one motion to recommit on each bill.
action_date: 2024-05-06
text: Placed on the Union Calendar, Calendar No. 401.
action_date: 2024-05-06
text: Reported (Amended) by the Committee on Financial Services. H. Rept. 118-484, Part II.
action_date: 2024-05-06
text: Reported (Amended) by the Committee on Financial Services. H. Rept. 118-484, Part II.
action_date: 2024-05-06
text: Reported (Amended) by the Committee on Agriculture. H. Rept. 118-484, Part I.
action_date: 2024-05-06
text: Reported (Amended) by the Committee on Agriculture. H. Rept. 118-484, Part I.
action_date: 2023-07-27
text: Ordered to be Reported (Amended) by Voice Vote.
action_date: 2023-07-27
text: Committee Consideration and Mark-up Session Held
action_date: 2023-07-26
text: Ordered to be Reported in the Nature of a Substitute (Amended) by the Yeas and Nays: 35 - 15.
action_date: 2023-07-26
text: Committee Consideration and Mark-up Session Held
action_date: 2023-07-20
text: Referred to the Committee on Financial Services, and in addition to the Committee on Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
action_date: 2023-07-20
text: Referred to the Committee on Financial Services, and in addition to the Committee on Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
action_date: 2023-07-20
text: Introduced in House
action_date: 2023-07-20
text: Introduced in House