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On Thursday, U.S. House Republicans unveiled a groundbreaking digital assets oversight bill, with the primary objective of creating a robust regulatory framework to safeguard investors in the rapidly evolving crypto sector.

“Today's introduction of the Financial Innovation and Technology for the 21st Century Act marks a significant milestone in the House Committees on Agriculture and Financial Services efforts to establish a much-needed regulatory framework that protects consumers and investors and fosters American leadership in the digital asset space,” said Chairman of the House Committee on Agriculture Rep. Glenn “GT” Thompson (R-Pa.) in a statement.

The bill, one of many proposed in recent years with the purpose of establishing comprehensive regulations for digital assets, arrives at a critical juncture. The perceived uncertainty surrounding regulatory frameworks and the surge in rigorous enforcement measures are compelling well-established crypto enterprises to contemplate relocating outside the U.S., while also discouraging startups from choosing it as their formation destination.

Thursday's bill, initially outlined in early June, seeks to establish a clear regulatory framework for cryptocurrency exchanges to become registered with the U.S. Securities and Exchange Commission (SEC). The bill also proposes granting these exchanges the capability to facilitate trading of digital securities, commodities, and stablecoins all within a unified platform.

“The crypto industry wants clarity and our collaborative bill gives both the CFTC and SEC a seat at the table. Our bill establishes clear principles to ensure financial security and certainty as digital asset developers continue to innovate,” said Dusty Johnson (R-S.D.) in the statement.

Gabriel Shapiro, the general counsel of Delphi Labs, pointed out a modification in the June discussion draft that, in his opinion, "completely alters the value prop[osition] of the bill" and could potentially reintroduce the very ambiguity it aims to resolve.

Consequently, Shaprio expressed on Twitter that various assets present in the decentralized finance (DeFi) market, including Compound's cTokens or Liquid Collective's Liquid Staking Tokens, "would be highly regulated under this provision even if [they are] not under current law."